Turkey Says US, Israel, Iran Conflict Poses Threat to Global
Speaking on Turkish television, Simsek highlighted the strategic importance of the conflict zone, describing it as “one of the world's most critical energy and trade corridors.”
He emphasized that the area accounts for nearly 20% of the world’s oil production, making the current interruptions in supply chains particularly concerning. “If oil price hikes remain permanent, they could negatively impact global inflation significantly,” he added.
Simsek also recalled the dramatic market reactions since the conflict began: “Brent crude prices surged more than 40% compared to their pre-war Friday closing levels, and natural gas prices in Europe jumped over 56%, while jet fuel costs increased by nearly 100%.”
He noted that disruptions are occurring simultaneously in the Red Sea and the Strait of Hormuz, causing extended shipping times between Asia and Europe. A prolonged conflict, he warned, could intensify global inflation, tighten financial conditions, and even bring the risk of stagflation.
In response to the outbreak, Turkish authorities convened to evaluate possible scenarios and implement preventive measures, which successfully mitigated the impact on domestic markets. As a result, the Turkish stock market declined by just 5.5%, while other markets in nations such as Indonesia, South Korea, and South Africa fell by 10% or more, according to reports.
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