According to the website of the Iranian government, President Ahmadinejad ordered the implementation of the pro-Palestinian bill, which was ratified by the Iranian Parliament (Majlis) earlier in June, ILNA reported.
Iranian lawmakers agreed to task a committee with identifying Israeli companies and institutions to step up efforts for imposing a ban on Israeli products.
Under the Majlis bill, the Iranian Foreign Ministry is required to put forward a proposal for the boycott of Israeli commodities at international meetings including the Organization of the Islamic Conference and the Non-Aligned Movement.
The ministry should also present annual reports on the activities of the committee to the Parliament's National Security and Foreign Policy Commission.
The bill also demands the Islamic Republic of Iran Broadcasting not to air television and radio advertisement for Israeli products.
The move comes after Israeli navy commandoes attacked the Gaza-bound Freedom Flotilla in international waters, killing 9 people onboard and injuring dozens of others.
The Israeli assault has sparked international condemnation and massive protests against Israel's three-year blockade of the impoverished coastal sliver.
Israel has remained defiant of calls by the UN for an international probe into the deadly attack, saying it is conducting its own independent investigation.