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Thursday, October 22, 2026

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Sanctions · Thursday, October 22, 2026

Treasury sanctions a law firm tied to Iranian shipping

The File desk · Oct. 22, 2026, 6:40 a.m. ET

Confirmed3 primary sources

Status

Confirmed from the Treasury Department release of Oct. 21, 2026, and a State Department release the same day. The sanctions are the government's action. The description of the firm's work is the government's.
  • Confirmed
    Treasury said it sanctioned the Panama- and Greece-based law firm Karnakis and Karnakis under Operation Economic Outcast.
  • Confirmed
    State said the firm set up shell companies for vessels carrying Iranian oil, and it named other targets. Those sentences are the government's.
The Treasury Department on Wednesday sanctioned a law firm it says helped Iran's oil tankers hide their owners. The firm is Karnakis and Karnakis, based in Panama and Greece. The action is part of what the government calls Operation Economic Outcast.12
Treasury Secretary Scott Bessent said, “Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm,” the government would act. The release cites . The State Department said that the firm has for years set up shell companies to hide the owners of vessels carrying Iranian oil. It also described five people, a ship manager with seven Panama-flagged cargo ships, and agents in Singapore and Dubai. Those details are the government's.12
No oil price is attached to this action. No official page used here ties the sanctions to a commodity move.
Why it matters (Estimate). Estimate. Sanctions usually name ship captains and shell companies. This round also names a law firm. People who do the paperwork for a tanker can be cut off from the U.S. financial system. That is the government's step. It is not, by itself, a statement about the price of oil.
The firm named in both releases is Karnakis and Karnakis.
How we know

Notes

  1. 1.Treasury Department, “Operation Economic Outcast Targets Iran's Shadow Fleet Networks,” Oct. 21, 2026. https://home.treasury.gov/news/press-releases/sb0664 The department said it sanctioned the Panama- and Greece-based law firm Karnakis and Karnakis. Scott Bessent: “Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm.” The release is under . OFAC recent action: https://ofac.treasury.gov/recent-actions/20261021
  2. 2.State Department, Oct. 21, 2026. https://www.state.gov/releases/office-of-the-spokesman/2026/10/unmasking-service-providers-facilitating-irans-shadow-fleet-operations/ “the Department of the Treasury today is sanctioning Karnakis and Karnakis, a law firm based in Panama and Greece. For years, the firm has set up shell companies to hide the true owners of vessels carrying Iranian oil.” The same release describes five people, a ship manager with seven Panama-flagged cargo ships, and agents in Singapore and Dubai.

What is still unknown or disputed

  • Whether the firm has responded. Not obtained.
  • Any effect on oil prices. Not claimed.

Primary sources

Every claim in this story is drawn from the documents below. If a fetch failed, that is recorded on the card.

  1. Source 1

    Operation Economic Outcast, Oct. 21, 2026

    U.S. Department of the Treasury · October 21, 2026

    Treasury sanctioned the law firm Karnakis and Karnakis for supporting Iranian shipping.

    https://home.treasury.gov/news/press-releases/sb0664

  2. Source 2

    Unmasking service providers for Iran's shadow fleet

    U.S. Department of State · October 21, 2026

    State said the firm set up shell companies for vessels carrying Iranian oil.

    https://www.state.gov/releases/office-of-the-spokesman/2026/10/unmasking-service-providers-facilitating-irans-shadow-fleet-operations/

  3. Source 3

    OFAC recent actions, Oct. 21, 2026

    Office of Foreign Assets Control · October 21, 2026

    The same-day sanctions list includes the Operation Economic Outcast action.

    https://ofac.treasury.gov/recent-actions/20261021

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