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The United States Supreme Court on Monday declined to review Türkiye’s state-owned Halkbank’s request to dismiss a long-running case over alleged violations of U.S. sanctions on Iran.
The decision leaves the case to continue in federal court in New York, where it was first filed in 2019.
Halkbank’s appeal to end the proceedings has now been formally denied, meaning the trial will advance in the coming months, in the U.S. District Court for the Southern District of New York.
Following the ruling, Halkbank shares dropped 10% on Borsa Istanbul, Türkiye’s main stock exchange.
Since the beginning of the case, Halkbank has repeatedly argued that, as an entity owned by the Republic of Türkiye, it should be shielded from prosecution in U.S. courts.
American judges have consistently rejected this claim, ruling that state-owned enterprises engaged in commercial activities are not immune from criminal liability.
In 2023, the Supreme Court determined that the Foreign Sovereign Immunities Act, which protects foreign governments from civil lawsuits in the United States, does not apply to criminal cases.
The case was remanded to the Second Circuit Court of Appeals, which concluded in October 2024 that Halkbank could not claim immunity under common law principles either.
In May 2025, the bank filed a new appeal to the Supreme Court, seeking a review of the October 2024 ruling.
In a filing with Türkiye’s Public Disclosure Platform (KAP), Halkbank underlined that the Supreme Court’s decision not to review its appeal does not mark the end of the judicial process.
The bank emphasized that legal proceedings are continuing in the ordinary course and stated that it intends to make use of every legal right available under U.S. and international law.
Halkbank also indicated that its strategy will involve both courtroom defense and diplomatic engagement, noting that channels of dialogue remain open between Türkiye and the United States, with ongoing discussions aimed at identifying a framework for potential settlement.
"Furthermore, initiatives to find a legal ground of conciliation within the framework of the understandings between the United States and Türkiye are also ongoing in a positive direction," Halkbank said.
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