17.03.2026 08:01
Minister of Treasury and Finance Mehmet Şimşek stated that the tensions in the Red Sea and the Strait of Hormuz are affecting global trade and energy prices, saying, "If the war continues, there is a serious risk of inflation." He also expressed that if the conflicts prolong, there could be pressure on Turkey's current account deficit.
The Minister of Treasury and Finance, Mehmet Şimşek, made important assessments regarding the effects of the war occurring on a global scale on the economy. Speaking on Akit TV, Şimşek stated that the conflicts have seriously affected global trade and inflation, adding that if the war prolongs, the Turkish economy could also be negatively impacted.
"THERE IS A SERIOUS PROBLEM IN THE RED SEA AND HORMUZ"
Şimşek expressed that the tensions experienced, particularly in the Red Sea and the Strait of Hormuz, are complicating global trade flows, stating, "There is a serious problem in both the Red Sea and Hormuz. This situation affects transportation from Asia to Europe and from Europe to Asia. This also impacts global trade and global inflation. If the war continues, there is a serious risk of inflation." he said.
"IF THE WAR PROLONGS, ITS IMPACT MAY INCREASE"
Evaluating the war's impact on the Turkish economy, Şimşek mentioned that if the conflicts are short-lived, the effects may remain limited. Şimşek stated, "If it lasts 1-2 months, we think the effects are manageable, but if it lasts longer, there is a possibility of negative effects on the current account deficit and inflation. We should not underestimate the impact of the war, but we are managing this effect." he expressed.
Recalling the Israel-Iran tension experienced last year, Şimşek noted that the closure of the Strait of Hormuz could have serious consequences for global energy and commodity trade, and this could also reflect on Turkey.
A SERIES OF MEASURES FOR MARKETS
Şimşek emphasized that the economic management has taken various steps to limit the effects of the global shock. He stated that the Central Bank has taken significant measures to manage foreign exchange and TL liquidity, mentioning that TL-settled forward foreign exchange sales transactions have been initiated.
Şimşek reported that the Capital Markets Board has also taken measures to prevent speculative movements in the markets, expressing that short selling in the stock market has been temporarily banned. He pointed out that Borsa Istanbul has taken steps to reduce volatility in the markets by decreasing order transaction intensity.
"IF IT WEREN'T FOR THE ESCALATION MOBILE SYSTEM, DIESEL WOULD BE 83 LIRA"
Şimşek stated that they have activated the escalation mobile system against the rise in energy prices, saying that this has limited the reflection of fuel prices on citizens.
Şimşek said, "If we hadn't implemented the escalation mobile system, today in Ankara, the price of diesel would be 83 lira and 10 kuruş per liter. With the increase in oil prices, the price that would reach this level is currently 67 lira and 10 kuruş thanks to the escalation mobile system. Gasoline is also at 62 lira and 30 kuruş today. If we hadn't activated this system, it would have been 71 lira and 11 kuruş." he stated.
Indicating that this application has placed a significant burden on the budget, Şimşek expressed that the system is being implemented temporarily and was activated with the expectation that the war would end soon.
"INFLATION WILL CONTINUE TO FALL THIS YEAR"
Şimşek stated that the war has created a shock effect in the global economy, but Turkey is trying to manage the process. He mentioned that inflation will continue its downward trend this year, saying, "We are facing a serious shock due to the war. I say this with the assumption that it will be temporary, inflation will continue to fall this year. I am more concerned about the current account deficit, but I still think it will be manageable." he concluded.