JERUSALEM/NICOSIA—Israel accused Iran on Monday of orchestrating an attempted attack against Israelis in Cyprus after police on the Mediterranean island said an armed individual had been arrested. Iran swiftly denied the accusation. “This was a terrorist incident directed by Iran against Israeli businesspeople living in Cyprus,” Matan Sidi, spokesman for Prime Minister Naftali Bennett, said in a statement. Asked to comment, the embassy of Iran in the Cypriot capital Nicosia said in an emailed statement: “This regime is always making such a baseless allegation against the Islamic Republic of Iran,” referring to Israel. Earlier on Monday, Cypriot police chief Stelios Papatheodorou told reporters: “A person has been arrested, in whose possession a pistol and cartridges were found.” “It is a sensitive case, which is why a remand request was held behind closed doors,” Papatheodorou added. Cypriot media, citing a police source, have reported that the suspect, who has not been …