Halkbank stock soars after US case dropped; another boon for US-Turkey ties (updated)

Turkiye Halk Bankasi

10/03/2026 08:53

US government resolves case involving Iran sanctions-busting

Bank pays no fine, admits no wrongdoing

Underlines warmest US-Turkish ties in decades

Analysts say US sanctions blocking F-35s could be solved next

New throughout with bilateral ties, outstanding issues, share move

By Mirac Dereli and Ece Toksabay

March 10 (Reuters) -
Halkbank stock surged as much as 9% on Tuesday after the U.S. agreed to resolve a long-running criminal case against the Turkish state lender without a monetary fine, in a move analysts said could pave the way to solving other diplomatic disputes.

The Istanbul-listed shares had already closed 10% higher on Monday, the exchange's maximum, after a U.S. judge referenced a deal between the two sides to effectively end the years-long case that had alleged Halkbank HALKB.IS had helped Iran evade U.S. economic sanctions.

The stock was up 4.5% at 49.88 lira ($1.13) at 0805 GMT. The bank said it will not admit to any criminal wrongdoing nor pay any judicial or administrative fines under the settlement.

The deal, expected to be approved by the court, would remove one of the most persistent irritants between the NATO allies, whose ties have warmed significantly since Donald Trump returned to the U.S. presidency last year.

Turkish President Tayyip Erdogan once called the Halkbank charges unlawful and "ugly". The U.S. government said on Monday the deal to resolve the case furthers its interest in curbing support for Iran, with which it is engaged in an expanding air war alongside Israel.

     TURKEY SEEKS US F-35 JETS

Syria, Washington and Ankara have largely aligned their policies over the last year in pressuring Kurdish militants - viewed by Turkey as terrorists and by the U.S. as key allies - to halt fighting and integrate with Syrian authorities.

With the Halkbank charges settled, the sides could begin to make progress resolving U.S. sanctions that currently block Ankara from purchasing U.S. F-35 fighter jets, a key demand from Turkey.

“Trump and Erdogan appear to be steadily clearing major disputes from the U.S.-Turkey agenda,” said Hakan Akbas, managing director at consultancy Strategic Advisory Services, pointing to easing tensions over Syria and now the Halkbank case.

“It raises the question whether Washington might soon clear the way for Ankara to purchase F-35 fighter jets despite existing sanctions."

     In 2020 - in a big rupture in bilateral ties during Trump's first term as president - the U.S. imposed sanctions on Turkey over its acquisition of ⁠Russian S-400 missile-defence systems, and also removed it from a F-35 fighter jet manufacturing and procurement programme.

The sides have said they ​are seeking a workaround to ⁠lift the sanctions.

Turkey's defence needs have been underlined over the last week as NATO defences intercepted two incoming Iranian missiles, prompting the alliance to deploy a U.S. Patriot air-defence system to southeastern Turkey.

($1 = 44.0450 liras)

 (Reporting by Mirac Dereli and Ece Toksabay; Writing and additional reporting by Jonathan Spicer; Editing by Sharon Singleton)

 ((miraceren.dereli@thomsonreuters.com;))