Western banks shutter Gulf offices after Iran vows retaliation for Tehran bank strike

Ibrahim Zulfikari, spokesman for Iran’s Khatam al-Anbiya Central Headquarters, declared on Wednesday that Tehran would target US- and Israeli-linked financial institutions across the region in direct retaliation for a strike on Bank Sepah in the Iranian capital.

Iran emphasized that it would respond to any enemy action against economic assets in the region on equal terms, designating such targets as legitimate military objectives.

“Through this illegitimate and unconventional act, the enemy is compelling us to target economic centers and banks linked to the US and the Zionist regime throughout the region,” Zulfikari said.

He directed a pointed warning at Washington, stating that “Americans should expect our painful retaliatory action.” Iranian officials simultaneously called on civilians in countries hosting US or Israeli banking institutions to evacuate within a one-kilometer radius of those facilities.

Within hours of the announcement, HSBC notified customers that it was closing all its branches in Qatar until further notice, citing the safety of staff and clients.

Citibank and Standard Chartered pull out of Dubai

In the warning’s immediate aftermath, US-headquartered Citibank became the second institution to order an evacuation from the Dubai International Financial Centre (DIFC), according to reporting by the Associated Press.

UK-based Standard Chartered had already reached the same decision shortly before, emptying its offices. Iran’s posture signals that any attempt to intimidate the region or strike its strategic assets will be met with determined resistance.

Bank Sepah was the target

Iran’s retaliation threats followed strikes against state-owned banks on Iranian soil. Iranian state media reported that the attack struck an administrative building linked to Bank Sepah — one of Iran’s largest state banks, with longstanding ties to the country’s military establishment.

The Israeli strike, carried out against a branch in northern Tehran, is reported to have killed staff who had been working overtime to process end-of-February payroll disbursements.

In the attack’s wake, Iranian authorities suspended services at Bank Sepah and a second major state lender, Bank Melli, froze their accounts, and halted digital banking systems nationwide. Officials described the measures as steps to safeguard financial resources during an ongoing state of war.

Israel’s strategy of targeting financial infrastructure is not new

Israel had previously struck financial institutions tied to Tehran’s regional allies, having targeted branches of Hezbollah-affiliated Qard al-Hasan in the southern suburbs of Beirut.

Qard al-Hasan is widely recognized for providing interest-free loans and basic financial services to ordinary Lebanese citizens — a role it assumed particular significance following the collapse of Lebanon’s conventional banking system in 2019.

The bank strike forms part of a broader campaign of US-Israeli attacks launched on February 28, encompassing civilian infrastructure and populated areas including schools, hospitals, sports facilities, historic sites, and residential neighborhoods.

Within two weeks, those strikes had killed more than 1,300 people inside Iran — at least 180 of them children — and left more than 10,000 wounded.

Iran responded by launching operations against US-Israeli military targets across West Asia, actions that precipitated the effective closure of the Strait of Hormuz.

As governments across Asia brace for deeper disruption in oil markets and a global supply shock, they are activating austerity measures, introducing fuel rationing, and rolling out emergency energy contingency plans.