(Adds share price reaction, background on dispute, Halkbank statement, paragraphs 2 and 6-8) * Halkbank's shares drop 8.5% after Supreme Court decision * State-owned Turkish bank accused of helping Iran evade US sanctions * Case has caused diplomatic tension between US and Turkey By Luc Cohen Oct 6 (Reuters) – The Supreme Court declined on Monday to hear another bid by Turkey's state-owned lender Halkbank to avoid fraud, money laundering and conspiracy charges in the United States for allegedly helping Iran evade American economic sanctions. The justices turned away Halkbank's appeal of a lower court's ruling that let the criminal case brought by the U.S. government proceed, allowing that decision to stand. Halkbank shares closed 10% lower in Istanbul on the news. The Supreme Court in 2023
UPDATE 1-US Supreme Court rejects challenge by Turkey's Halkbank to prosecution

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