With over 85% imported, Turkey braces for energy ripples of Iran-Israel war
Rising oil prices threaten Turkey’s fragile economy amid escalating regional tensions, while energy supply risks grow.
ANKARA — The Iran-Israel war has driven up global oil prices, creating fresh risks for Turkey’s fragile economy and further complicating Ankara’s efforts to rein in inflation and secure stable energy supplies.
The most immediate war-related blow to Turkey's economy is rising oil prices, which threaten to upend the government’s inflation target for the end of 2025. The spike in energy costs is expected to widen the country’s current account deficit and add to existing inflationary pressures.
Brent crude prices jumped over 7% on Friday following Israeli airstrikes on Iran’s nuclear sites. Prices had reached $74.20 per barrel as of this writing, slightly easing from the earlier jump. The price shock is expected to widen Turkey’s current account deficit, as the country imports roughly 85% of its oil and more than 90% of its gas.
“Every $10 increase in oil prices adds about $2.6 to $3 billion annually to the current account deficit,” Arif Akturk, an energy consultant and former senior official at Turkey’s state energy company, Botas, told Al-Monitor.
