Shin Bet said it was the latest in a series of attempts by Tehran to recruit Israelis and gain intelligence.
A statement said that seven nationals from the north of the country were arrested after an investigation found they had gathered information about military bases and energy and port infrastructure.
Israeli police said the breach was among the most serious seen by Israel.
A source within the Shin Bet security service said: "The activity of the members of the ring has caused damage to the security of the state."
Iran's foreign ministry was not immediately available for comment.
But it is understood that the suspects who include two minors - had been tasked by agents from Tehran's intelligence service to carry out hundreds of information-gathering tasks on military bases across the country.
Denne historien er fra October 23, 2024-utgaven av Daily Express.
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Denne historien er fra October 23, 2024-utgaven av Daily Express.
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Arteta's boys go all Guns blazing
MARTINELLI SPARKS A FIVE-GOAL SPREE
IT'S DUTCH A DEBACLE FOR CITY
Chaotic defending wrecks night as troubles continue
THE REAL DEAL
Slot wary of side who never know when they are beaten
£2.2m Lottery syndicate winner caught in police child sex abuse sting
A CHARITY worker who won a share of a National Lottery windfall has been jailed for child sex abuse following a police sting.
Five found alive day after yacht capsizes
TWO Britons were last night understood to be among seven people missing after a tourist boat sank off Egypt's Red Sea coast.
Brit who was the world's oldest man dies aged 112
THE Briton who at 112 was the world’s oldest man has died peacefully in his care home.
Glastonbury-bound Rod: I don't want to talk about retiring
Rocker to play festival legends slot aged 80
Bath risks gaining new reputation as shoplifters' haven
ELEGANT Georgian Bath - home of Jane Austen costume dramas - is suffering a shoplifting epidemic, rising faster than anywhere else in Britain.
'I can't believe I've just won Bake off!'
Georgie's joy as she lifts competition trophy for Wales
Southport teacher: Use dead girls' memories as driving force for change
A DANCE teacher who was injured in the Southport knife attack that left three little girls dead has insisted that the victims’ memories should serve as a driving force for change.
