The US Treasury Department imposed sanctions on Wednesday on Karnakis & Karnakis, a law firm based in Greece and Panama, saying it had for years provided legal assistance to Iranian shipping networks.

The US Financial Crimes Enforcement Network also issued an administrative subpoena to advance an investigation into a Greek bank over potential ties to Iran, according to a Treasury statement, which did not name the bank.

FINCEN also issued requests for information to six other European banks that it did not name over relationships with Iranian financial institutions under US sanctions.

“Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm, if you are supporting the Iranian regime, we will find you and sanction you,” Treasury Secretary Scott Bessent said in a release.

Washington has held off striking Iran this month in the war that the US and Israel launched on February 28, and instead has continued the blockade of Iranian ports and issued waves of sanctions on Iranian shipping networks and those who the US says aid them.

State Department spokesman Tommy Pigott said Karnakis & Karnakis for years “set up shell companies to hide the true owners of vessels carrying Iranian oil, petrochemicals, and steel.”

He said the firm created companies that served as fronts for networks selling millions of barrels of Iranian oil to benefit the Islamic Revolutionary Guard Corps Quds Force and the Houthis.

Karnakis & Karnakis did not immediately respond to a request for comment.

Treasury also imposed sanctions on Singapore- and UAE-based shipping agents that it said directly aid Iranian shadow fleet operations.

The US State Department has ordered some diplomats and family members to depart from its missions in Saudi Arabia and plans to withdraw family members from a number of other US missions in the region, US officials told Reuters.

The order came as attacks in Saudi Arabia killed at least one person and injured eight others at a civilian airport in Dammam and two people were killed in a drone attack on an oil field.

State Department spokesperson Tommy Pigott said in a post on X that the department ordered the departure of “non-emergency US government employees and their family members in Saudi Arabia only” amid attacks by the Iran-aligned Houthis in Yemen on civilian targets in the country.

Washington had returned some diplomatic personnel to the region in recent months after many were pulled out when Tehran launched attacks on US facilities after the US-Israeli war on Iran began in late February.

“Iranian-supported Houthis have increasingly engaged in hostilities against Saudi Arabia, including attacks on civilian airports and other critical infrastructure resulting in civilian casualties and severe travel disruptions,” Pigott said.

Four US officials told Reuters that US missions in other Gulf states would also be ordering family members to leave. Pigott did not address changes to other missions outside Saudi Arabia.

The latest withdrawals follow an escalation of the fighting in Yemen, opening another front ​in the regional conflict triggered by the US-Israeli ⁠war on Iran. The wider conflict has snarled global energy trade and hurt Gulf economies.

After the departure order, Saudi Arabia’s civil aviation authority reported an attack on King Fahd International Airport in Dammam that killed one person and injured eight others. Earlier in the day, two people were killed after Saudi air defences intercepted a drone that was attempting to hit a facility at Saudi Aramco’s Shaybah oilfield, the energy ministry said.

The US embassy in Riyadh issued a security alert on Wednesday about possible further attacks by the Houthis on Saudi Arabia, after recent deadly strikes including on Riyadh’s airport.

The embassy and a CIA station hosted there came under attack by drones in early March, as Iran began launching attacks across the region.

Israeli prime minister Benjamin Netanyahu said on Wednesday that he has directed the military and the Mossad to bring down the Iranian government.

Speaking at a graduation ceremony for IDF officer cadets, Netanyahu said his instruction to the Israel Defense Forces and the Mossad was “to overthrow the regime in Iran”, saying that Tehran “has not yet learned its lesson”.

He accused Supreme Leader Ayatollah Mojtaba Khamenei of following in his father’s footsteps by “unlocking the weapon”, and said Iran was again trying to build a nuclear bomb.

The remarks follow similar language in September, when Netanyahu told the IDF General Staff that toppling the regime was “within reach”.

Israel and the United States have been in an intermittent conflict with Iran since earlier this year, during which Ali Khamenei was killed.

Israel’s Channel 12, citing US officials, reported that dozens of Israeli fighter jets and refuelling aircraft flew over Syria and Iraq towards the Iranian border earlier this week on a route suggesting an attack, though the aircraft turned back shortly before reaching Iranian territory.

According to Channel 12, Israel told Washington in advance that the flight was an exercise and a show of force meant to deter Iran.

The channel said some sources believe certain Israeli officials may have hoped Iran would fire on the aircraft, giving Israel a pretext to attack.

The Financial Times has reported that Netanyahu sought to launch strikes against Iran earlier this month, but that US president Donald Trump opposed a new conflict ahead of the US midterm elections.

Channel 12 also reported that IDF chief of staff Eyal Zamir warned his American counterpart, General Dan Caine, that a war before Israel’s elections next week would probably force a postponement of the vote.

The US State Department is preparing to issue an ordered departure of some personnel and family members from US embassies across the Gulf region, three US officials said on Wednesday.

The move was due to a possible resumption of hostilities, particularly with Iran-aligned Houthi militia in Yemen, two of the US officials said.

The US Embassy in Riyadh issued a security alert on Wednesday about possible further attacks by the Houthis on Saudi Arabia, after recent deadly strikes including on Riyadh’s airport.

Two of the US officials said the ordered departures would potentially involve the evacuation of all personnel and their families from the US Mission to Saudi Arabia.

The US Treasury Department imposed sanctions on Wednesday on Karnakis & Karnakis, a law firm based in Greece and Panama, saying it had for years provided legal assistance to Iranian shipping networks.

The US Financial Crimes Enforcement Network also issued an administrative subpoena to advance an investigation into a Greek bank over potential ties to Iran, according to a Treasury statement, which did not name the bank.

FINCEN also issued requests for information to six other European banks that it did not name over relationships with Iranian financial institutions under US sanctions.

“Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm, if you are supporting the Iranian regime, we will find you and sanction you,” Treasury Secretary Scott Bessentsaid in a release.

Karnakis & Karnakis did not immediately respond to a request for comment.

Treasury also imposed sanctions on Singapore- and UAE-based shipping agents that it said directly aid Iranian shadow fleet operations.

The tractors rolling into the town of Gela on the southern tip of Europe are flying the Sicilian flag, emblazoned with Medusa, three bent legs and ears of wheat, a reminder of the island’s role as a breadbasket since Roman times.

But the farmers are not bringing in a harvest. They are protesting.

As soaring fuel prices squeeze household budgets and businesses across Europe, cost-of-living pressures are driving unrest and giving fresh momentum to far-right parties ahead of elections next year in countries including France, Italy and Poland.

Parties once considered fringe had already been gaining ground, with voters from motorists in rural France to young men in Germany’s former Communist east looking for alternatives.

The US-Iran war, which erupted in February and sent energy prices sharply higher, has compounded the challenge for governments already struggling to contain inflation, support growth and rein in spending.

The discontent has spilled onto the streets.

In France, demonstrations that began over deteriorating school facilities in Paris’ northern suburbs have morphed into some of the country’s worst unrest in decades, with shops looted, buildings torched and a 19th-century town hall in Limoges set on fire.

“Why am I here? Well, quite simply, I find the current cost of living truly terrifying,” said Quentin Leviloux, a 21-year-old protester in Nantes.

“Just think of people who earn barely the minimum wage, when you look at the cost of food, fuel, and everything else. It’s terrifying how incredibly expensive things have become.”

The European Commission estimates the Iran conflict has cost Europe roughly €100 billion ($112 billion) through disrupted trade and energy markets. Gas prices have jumped about 140% and diesel prices have doubled.

In a weekend address, French President Emmanuel Macron acknowledged the “legitimate demands” of protesters angered by rising living and fuel costs, while condemning those responsible for violence and looting. “We must never confuse them with those who destroyed, vandalised and looted,” he said.

Cost-of-living protests spread across Europe

Violence has also erupted elsewhere. In the wealthy northern Italian city of Milan, police clashed on Sunday with protesters hurling stones and looting stores during demonstrations over poor public services and rising living costs.

In Gela, on Sicily’s southern coast, farmers say fuel costs have made operating machinery prohibitively expensive. “We cultivate the land, we harvest debts,” said one banner.

“We are completely at a standstill,” said Arcangelo Gambino, a farmers’ representative in Caltanissetta province. “The (fuel) cost has more than doubled.”

Roadblocks by truckers, farmers and steelworkers have disrupted transport across parts of southern Italy, contributing to local fuel shortages and concerns over supermarket supplies.

Tens of thousands marched through Lisbon on Saturday over low wages, housing costs and the rising cost of living, increasing pressure on Portugal’s centre-right government.

In Spain, the eviction of an 87-year-old woman from her home sparked nationwide demonstrations over housing shortages and soaring rents, helping trigger a snap election next month.

Belgium has also seen demonstrations, while large rallies in Albania have been driven by anger over perceived government corruption, a lack of jobs and poor education standards.

The protests reflect broader economic anxieties that are increasingly shaping politics across the continent.

Concerns about purchasing power have become “a major driver of populist politics” across Europe, said Gilles Ivaldi, a political scientist at Sciences Po.

Politicians on both the hard right and hard left have increasingly argued that restoring energy ties with Russia would help lower costs, challenging Europe’s mainstream consensus on support for Ukraine.

Le Pen makes fuel prices an election issue

The latest energy shock comes after years of economic strain following the pandemic and the fallout from Russia’s 2022 invasion of Ukraine.

In France, rising energy costs have provided an explosive backdrop to next April’s presidential election. Macron’s government is struggling with a ballooning budget deficit and pressure from bond markets.

Frontrunner Marine Le Pen of the far-right National Rally and hard-left veteran Jean-Luc Melenchon have both made fuel prices central planks in their campaigns.

“Rising fuel prices are clearly an issue that boosts Marine Le Pen,” said Ivaldi. “I think this is an issue she has owned for quite some time.”

Since the Iran war began, Le Pen’s ratings have improved while Macron’s have slipped, according to polling by Elabe.

Le Pen’s proposal to sharply cut value-added tax on fuel has attracted broad public support. Analysts say the issue resonates strongly with her core voters in rural and semi-rural areas where car travel is often essential.

Far-right parties call for renewed Russian energy ties

In neighbouring Germany, the Alternative for Germany (AfD) is leading national opinion polls after strong gains in local elections. The cost of living topped Germans’ concerns for a fifth straight year in a survey published this month.

German inflation spiked to nearly a three-year high in September, with energy price inflation rising to 14.9%, handing ammunition to the AfD to attack Chancellor Friedrich Merz.

The AfD is pushing to restore energy ties with Russia, arguing that Berlin’s support for Ukraine is needlessly self-sabotaging at a time when Europe’s largest economy and many of its energy-hungry companies are struggling.

Past experience indicates a link between high energy prices and voter turnout for the AfD, said Jan Steckel, professor for the political economy of climate change at the Technical University of Munich.

“Populist parties often frame energy costs as avoidable and attribute them to government policy choices … rather than to the underlying geopolitical shocks that drive them,” he said.

“These geopolitical shocks are … much more difficult to explain. And I think this is why incumbent parties often struggle.”

The argument is gaining traction elsewhere.

In Italy, Prime Minister Giorgia Meloni faces growing competition from National Future, a new far-right party led by former army general Roberto Vannacci that advocates restoring gas links with Russia.

In Poland, one of Ukraine’s staunchest supporters, concern over energy bills is helping boost support for the far-right Confederation of the Polish Crown. Its leader, Grzegorz Braun, has called for a return to buying Russian oil and gas, making the case alongside AfD politicians in Lubmin, where the damaged Nord Stream pipelines land in Germany.

“I love the smell of Russian gas in the morning,” he said.

US Defense Secretary Pete Hegseth met with Israeli Prime Minister Benjamin Netanyahu during an unannounced visit to Israel on Monday, a person familiar with the matter said, as tensions flare between the US and Iran.

The person did not say what the two men discussed during the meeting, first reported by Axios. The Pentagon declined to comment. The Israeli prime minister’s office did not immediately respond to a request for comment.

Hegseth said in a social media post that he had visited US service members in the Central Command area of responsibility, which covers the Middle East, northeast Africa and parts of Asia.

Israel’s Army Radio reported his meeting with Netanyahu took place at an air force base in Israel’s southern desert.

Hegseth’s visit comes amid rising tensions in the Middle East war as tensions flare between the U.S. and Iran over the Strait of Hormuz and as Yemen’s Iran-allied Houthis intensify their attacks on Saudi Arabia.

It also came a day after US President Donald Trump endorsed Netanyahu in next week’s parliamentary election in Israel, the country’s first ballot since the October 7, 2023, Hamas attack on southern Israel.

US and Israeli forces launched joint strikes against Iran in late February, setting off the wider Middle East war. Netanyahu told Israeli media this month that he’s not seeking to attack Iran before the October 27 Israeli election. Trump has said he will not attack Iran before US midterm elections in November.

Pakistan’s army chief Field Marshal Asim Munir is due to visit Tehran on Tuesday, according to a Pakistani official and Iranian media.

Pakistan has played ​a key mediating role between the U.S. and Iran this year. 

The scheduled visit follows earlier talks between Munir and Iranian leaders in the summer that focused on measures to prevent further escalation, reopening of ​the Strait of Hormuz and an expedited termination ⁠of the conflict.