Middle East War Sends Shockwaves Through Türkiye's Financial Markets

By Bosphorus News Economy Desk

The broad air campaign launched by the United States and Israel against Iran on February 28 triggered immediate turbulence in Türkiye's financial markets. As geopolitical risks escalated and investors moved toward safe-haven assets, sharp swings were recorded across currency, equity and commodity markets.

Türkiye's central bank intervened directly to stabilise the lira, selling approximately $12 billion before markets opened on Monday, March 2, according to Bloomberg, citing anonymous sources. The intervention was notable for its scale and timing, coming as most emerging market currencies were losing ground against the dollar.

Treasury and Finance Minister Mehmet Şimşek announced that a sliding-scale pricing mechanism for fuel had been temporarily activated to limit the impact of rising oil prices on the economy. Şimşek said the disinflation process would continue without compromising fiscal discipline.

Borsa İstanbul's BIST 100 index opened the week down approximately 5.3 percent. Gold prices surged sharply following the outbreak of hostilities, with the gram price briefly reaching 8,000 lira, testing record levels. Demand for dollars increased, adding further pressure on the lira.

Analysts noted that the regulatory measures taken so far have helped contain extreme volatility, though they cautioned that turbulence could persist as long as geopolitical risks remain elevated. JP Morgan's head of emerging markets strategy Nick Eisinger said the policy appeared sustainable given the available resources.

Source: TClira.com