Israeli City Sues Iran for $65 Million Over 2025 Missile Attack

The Israeli municipality of Bat Yam has filed a lawsuit against the Islamic Republic of Iran, seeking 250 million shekels (approximately $65 million) in compensation for human and material damages sustained by the city during an Iranian missile attack in June 2025. The lawsuit was initiated by Mayor Tzvika Brot and prepared by an international legal team led by the organization Shurat HaDin, headed by attorney Nitsana Darshan-Leitner. The legal filing, written in Hebrew and translated into Persian, was reported by Yedioth Ahronoth on Sunday.

In an unusual move to serve the lawsuit to Iran, Brot and his team traveled to Manhattan, New York, last week. There, they delivered a copy to the First Secretary of the Iranian delegation to the United Nations, coordinating with Israeli government bodies, the U.S. administration, and security officials. The four-month preparation involved gathering intelligence on Iranian diplomats' movements in New York, creating identification profiles, and mapping their travel routes with the help of local assistants. The team chose to serve the papers in a neutral location outside the Iranian mission to avoid legal complications.

According to the operation's details, the team spotted the Iranian diplomat leaving a building and followed him until he stopped at a traffic light. Brot identified himself, and although the diplomat stated he had diplomatic immunity and could not communicate with them, the team pursued him for several minutes through Manhattan streets, reading him the contents of the lawsuit.

Bat Yam suffered severe damage from the June 2025 Iranian missile attack, which killed nine residents, injured 178, and damaged 160 buildings, 22 of which were deemed immediately irreparable. Thousands of residents were displaced, with the municipality providing alternative housing. The city aims to seize Iranian assets held by Israel, specifically funds related to the Eilat-Ashkelon oil pipeline company, to cover the compensation. These funds stem from a pre-revolution agreement where Israel was obligated to pay Iran approximately $1.1 billion for its share in the pipeline, a payment Israel has refused, citing a ban on dealing with an enemy state.

Sources indicated that Prime Minister Benjamin Netanyahu, along with the Ministries of Foreign Affairs, Justice, the National Security Council, and security agencies, approved the initiative. The government's legal advisor, who had previously opposed confiscating funds from the Eastern Partnership Fund, withdrew his objection. Iran has 60 days to respond to the lawsuit, after which Bat Yam can seek a default judgment. However, the primary challenge remains enforcing the judgment and collecting the awarded sum.

Bat Yam municipality described the serving of the lawsuit as "settling a score" with Iran. Brot stated that Iran sent missiles, and the city sent the bill, asserting that Iranian officials cannot evade responsibility for the damage. Darshan-Leitner added that it is time for Iran to pay for its actions and that her team will continue to work for terror victims to inflict economic damage on the Iranian regime.