Turkey's state-owned Halkbank has reached a settlement agreement with United States authorities to resolve a long-running criminal case over alleged violations of Iran sanctions, according to reports.

The case against Halkbank has been a significant source of tension between Washington and Ankara for several years. US prosecutors had accused the Turkish bank of helping Iran evade American economic sanctions through a complex scheme involving gold trades and other financial transactions.

The settlement comes as Turkey and the United States work to manage various diplomatic and security challenges in the region. The resolution of this case removes a major irritant in bilateral relations that had complicated cooperation on other issues.

Halkbank, as Turkey's second-largest state bank, plays a significant role in the country's financial system. The bank had previously denied wrongdoing and contested the charges, arguing that its transactions were legitimate under Turkish law and international regulations at the time.

The specific terms and financial implications of the settlement were not immediately disclosed. The agreement allows both countries to move forward without the continued legal uncertainty that had surrounded the case for years.