Halkbank Iran Sanctions Case Can Go Forward, US Court Says (1)

Turkey’s state-owned Halkbank can be prosecuted for conspiring to violate US sanctions against Iran, a federal appeals court ruled, sending the bank’s shares down.

Tuesday’s decision by the US Court of Appeals in Manhattan could remove legal obstacle to the longstanding case proceeding to trial. Last year, the US Supreme Court ruled Halkbank wasn’t shielded from prosecution by a US statute granting immunity to governments for official acts.

But while the courts have largely decided the legal issues, the future of the case may also hinge on the outcome of the presidential election. Geoffrey Berman, the former Manhattan US ...