ISTANBUL

The ongoing US-Israel-Iran conflict threatens the global economy with severe inflation and supply chain disruptions, the Turkish Treasury and Finance Minister Mehmet Simsek warned on late Monday.

Speaking on Türkiye's Akit TV, Simsek stressed that the war occurs in one of the world's most critical energy and trade corridors.

He noted that the region supplies nearly 20% of global oil, making the current supply chain breakdowns highly alarming.

If oil price hikes remain permanent, they could negatively impact global inflation significantly, he said.

He recalled that 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%.

Simsek pointed out simultaneous disruptions in the Red Sea and the Strait of Hormuz, which extended shipment times between Asia and Europe.

A prolonged war brings risks of global inflation, tighter financial conditions, and potential stagflation, he warned.

Following the outbreak of the conflict, Türkiye convened to analyze scenarios and take proactive measures; these steps successfully limited the fallout on Turkish markets, keeping the stock market decline at just 5.5%.

In contrast, stock markets in countries like Indonesia, South Korea, and South Africa experienced drops of 10% or more.

Emphasizing that Türkiye remains an island of stability, he positioned the country as a vital alternative for global firms needing to diversify their supply chains.

He added that Türkiye's strong defense industry further enhances its deterrent capabilities and technological advancements.