TΓΌrkiye's Halkbank has reached an agreement with the U.S. government to settle a yearslong case against the state-run lender over an alleged violation of sanctions on Iran, in a move analysts said could pave the way to solving other diplomatic disputes.

Under the terms of a deferred prosecution agreement with the Department of Justice, Halkbank "will not admit to any criminal offenses, nor will it pay any judicial or administrative fines," the bank said in a statement late on Monday.

The agreement, if approved by a judge, would relieve one of the main irritants between TΓΌrkiye and the U.S., as the NATO allies β€Œexperience their best ties in decades following Donald Trump's return to the U.S.

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