Officials said the money to Hamas marked the first Israeli transfer since October 2008. They said Barak was pressed by both Fischer and Palestinian Authority Prime Minister Salam Fayyad. The decision has been criticized by several Cabinet ministers.

"How is it possible that our government continuously supports those which aim to destroy us?" Ms. Darshan-Leitner asked.

Despite the appeal to the High Court, the Defense Ministry transferred the cash to the Gaza Strip on Dec. 11. Israeli protesters failed to stop an armored truck from delivering the money.

The petition to the High Court demanded the end to all monetary transfers by Israeli banks to Hamas. The High Court was told that the funds transferred by Israel would be used by the Hamas regime to continue attacks on Israel.

Two of Israel's leading banks — Israel Discount Bank and Bank Hapoalim — have been pressured by the government of Prime Minister Ehud Olmert to transfer cash to Hamas, the petition said. In October 2007, both Israel Discount Bank and Bank Hapoalim announced that they would end transactions with financial institutions in the Gaza Strip.

The Israel Law Center has threatened Israeli suppliers to the Hamas regime that they could be sued in U.S. courts under a law that bans aid to groups deemed terrorist. The two Israeli banks have branches in the United States.

"In recent years banks in the United States, Canada, Europe and Asia have been sued by terror victims for aiding the terrorist groups by providing them and charities affiliated with them financial services," the Israel Law Center said.

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