The ongoing conflict between the US, Israel and Iran threatens the global economy with serious inflation and disruptions in the supply chain, Turkish Treasury and Finance Minister Mehmet Simsek warned last night, Anadolu Agency reported, quoted by BTA.
In front of the Turkish „Akit TV“ Simsek stressed that the war is being fought in one of the world's most important energy and trade corridors.
He noted that the region supplies nearly 20% of the world's oil, making the disruption in the supply chain extremely worrisome.
If the rise in oil prices remains persistent, they could have a significant negative impact on global inflation, Simsek said.
He recalled that Brent crude oil prices jumped more than 40% from their pre-war levels on Friday, natural gas prices in Europe jumped more than 56%, and jet fuel prices increased by nearly 100%.
Simsek pointed to simultaneous disruptions in the Red Sea and the Strait of Hormuz, which have extended shipping times between Asia and Europe.
A prolonged war carries risks of global inflation, tighter financial conditions and potential stagflation, he warned.
After the conflict broke out, Turkey analyzed scenarios and took proactive measures that successfully limited the impact on Turkish markets, keeping the stock market decline to just 5.5%.
At the same time, stock markets in countries such as Indonesia, South Korea and South Africa saw declines of 10 percent or more.
Emphasizing that Turkey remains an island of stability, Şimşek positioned the country as a vital alternative for global firms that need to diversify their supply chains.
He added that Turkey's strong defense industry further strengthens its deterrence capabilities and technological advancements.