The U.S. Treasury Department sanctioned Greece- and Panama-based law firm Karnakis & Karnakis on October 21, 2026, for creating shell companies to hide vessels transporting Iranian oil, petrochemicals, and steel. The illicit trade funded the IRGC Quds Force and Houthi militants. Washington also targeted shipping agents in Singapore and the UAE while FinCEN launched probes into seven European banks over potential Iranian ties amidst an ongoing maritime blockade.
US sanctions on Karnakis & Karnakis
- ▪U.S. State Department spokesman Tommy Pigott stated that Karnakis & Karnakis spent years setting up shell companies to conceal the true owners of vessels transporting Iranian oil, petrochemicals, and steel
- ▪Law firm Karnakis & Karnakis did not immediately respond to requests for comment following the announcement of U.S. sanctions against Karnakis & Karnakis on October 21, 2026
- ▪Karnakis & Karnakis created front companies used by networks selling millions of barrels of Iranian oil to fund the Islamic Revolutionary Guard Corps Quds Force and the Houthis, according to Tommy Pigott
- ▪The U.S. Department of the Treasury imposed sanctions on October 21, 2026 on Karnakis & Karnakis, a law firm based in Greece and Panama, for providing legal assistance to Iranian shipping networks
FinCEN inquiries into European banks
- ▪The U.S. Financial Crimes Enforcement Network issued information requests to six unnamed European banks regarding their relationships with sanctioned Iranian financial institutions
- ▪The U.S. Financial Crimes Enforcement Network issued an administrative subpoena to advance an investigation into an unnamed Greek bank regarding potential financial ties to Iran
US military strategy regarding Iran
- ▪The United States and Israel launched a war against Iran on February 28, 2026
- ▪In October 2026, the United States refrained from military strikes on Iran, relying instead on a naval blockade of Iranian ports and sanctions against Iranian shipping networks
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