Weird argument. Given they're in the US, not complying with US sanctions on Iran isn't an option either.
That’s not how sanctions work. A company can’t knowingly service a customer under sanctions. If your account was termination for sanction related reasons, they have no choice but to shut it down as fast as possible once they know that fact.
They cannot continue to service it for a few days or even service transfer requests. It’s a hard stop.
Sanctions are a hard cutoff. There isn’t room to allow serving sanctioned customers for a little while or giving them services to allow an off ramp. Sanctions mean “You must not serve these customers”. As soon as a company discovers they’ve been accidentally serving a sanctioned customer, they must stop immediately. If they were to continue giving them service or a grace period, they are violating the sanctions.
No, I don't think so.