US imposes sanctions on law firm over Iranian shipping ties

On October 21, 2026, the US Treasury Department imposed sanctions on Karnakis & Karnakis, a law firm operating in Greece and Panama. The US government accuses the firm of providing long-term legal assistance and establishing shell companies to conceal the operations of Iranian shipping networks.

Simultaneously, the US Financial Crimes Enforcement Network (FinCEN) issued an administrative subpoena to an unnamed Greek bank regarding potential financial ties to Iran. Additionally, requests for information were sent to six other undisclosed European banks as part of an investigation into their dealings with sanctioned Iranian financial institutions. Treasury Secretary Scott Bessent stated that these actions are part of a broader effort to disrupt support for the Iranian regime, which remains under a US-led port blockade following the outbreak of conflict on February 28, 2026.

These measures represent an intensification of Washington's strategy to pressure Iran through economic and legal channels rather than direct military engagement. The investigations into the banking sector are ongoing, with US authorities signaling further scrutiny for entities facilitating illicit Iranian maritime activity.