Iran announced on Friday it fully reopened the Strait of Hormuz to commercial vessels, but U.S. President Donald Trump said the American blockade on Iranian ships and ports “will remain in full force” until a deal is reached with Tehran.

Iranian Foreign Minister Abbas Araghchi posted on X that the crucial waterway through which about 20% of the world’s oil is shipped was now fully open to commercial vessels, as a 10-day truce in Lebanon appeared to hold.

The truce offered a pause in Israeli strikes on Lebanon and could clear one major obstacle to a deal between Iran and the U.S. and Israel to end weeks of devastating war.

Trump initially celebrated, posting on social media that Iran announced the strait “is fully open and ready for full passage.” But minutes later, he issued another post saying the U.S. Navy’s blockade would continue until “UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE.”

Trump imposed the blockade earlier this week after Iran restricted traffic through the strait due to Israeli strikes on Lebanon, which Iran said was a breach of the Pakistan-brokered cease-fire reached between the U.S., Israel and Iran.

At the time, Trump said the blockade would enforce an “all or none” policy in hopes of pressuring Iran to reopen the strait.

Trump’s decision to continue the blockade despite Iran’s announcement appeared aimed at sustaining pressure on Tehran, as the fate of the two-week cease-fire reached last week remains uncertain.

Direct talks between the U.S. and Iran last weekend were inconclusive, as the two nations differed over Iran’s nuclear program and other sticking points.

Trump had said on Thursday that talks with Iran could happen as soon as this weekend, although that was looking increasingly unlikely by Friday afternoon, given the logistics of assembling officials in Islamabad, where the talks are expected to take place.

The head of the International Energy Agency had warned that energy shocks could get worse if the Strait of Hormuz did not reopen. Iran closed the crucial waterway shortly after the war began, threatening the worst oil shock in history.

Oil prices plunged following Araqchi’s post.

The International Monetary Fund (IMF) this week lowered its forecasts for global growth and warned the global economy risked tipping into ⁠recession if the conflict was prolonged.

Later on Friday, a senior Iranian military official said Tehran would block military vessels from transiting the Strait of Hormuz,

“The passage of military vessels through the Strait of Hormuz remains prohibited,” the official was quoted as telling Iranian state television, adding that civilian vessels would have to transit the waterway through designated routes and with permission of the Iranian Revolutionary Guards Navy.

French President Emmanuel Macron and British Prime Minister Keir Starmer welcomed the Strait of Hormuz reopening, but said it must become permanent

They said they will keep planning an international mission to restore maritime security, with a meeting of military planners in London next week.

Speaking after a gathering of some 50 countries, Macron said “we all demand the full, immediate and unconditional reopening of the Strait of Hormuz by all parties.”

Starmer said the announcement by Iran and the U.S. must become “both lasting and a workable proposal.”

He said France and the U.K. will lead a multinational mission to safeguard shipping “as soon as conditions allow.”

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Türkiye’s energy markets have demonstrated strong resilience in the face of successive global shocks, Energy and Natural Resources Minister Alparslan Bayraktar said on Friday, pointing to years of crisis-driven adaptation as a key strength.

Bayraktar was speaking at a panel on the sidelines of the Antalya Diplomacy Forum 2026, where he addressed the latest market turbulence linked to the Middle East conflict, while signaling a faster timeline for the country’s transition toward a low-carbon economy.

Energy prices have spiralled since the Strait of Hormuz, a vital global oil and gas shipping route, was closed as a result of the U.S.-Israeli attacks on Iran and Tehran attacking energy infrastructure in the Middle East. On Monday, Washington imposed a blockade on ships entering or leaving Iranian ports.

The crisis came as a test for countries heavily reliant on oil and gas imports, including Türkiye.

Bayraktar said Türkiye’s ability to withstand volatility stems from years of exposure to overlapping crises, including the climate crisis, the COVID-19 pandemic, supply chain disruptions and geopolitical conflicts such as the Russia-Ukraine war and tensions in the Middle East.

“This crisis has, of course, affected us deeply. However, our energy markets are quite resilient. Türkiye is resilient because we have experienced crises in the past. We are already living with the uncertainties surrounding us,” said the minister.

“Over the last six to seven years, we have experienced the climate crisis, the pandemic and uncertainties in the supply chain. Following the Russia-Ukraine war, Iran and the Middle East have all made Türkiye resilient. We are used to dealing with crises.”

Bayraktar emphasized that Türkiye’s energy strategy has evolved over the past 25 years, with reforms opening markets to private investment, expanding regional cooperation and delivering large-scale infrastructure projects. However, he warned that rapidly rising domestic energy demand presents a growing challenge.

Carbon-neutral policy

He emphasized that Türkiye’s long-term strategy centers on boosting energy security while reducing import dependence through diversification and increased use of renewables.

“Energy demand in Türkiye is increasing very rapidly. AI-based centers and factors like electric vehicles are driving up energy needs. We have set a goal to move away from fossil fuels and utilize electricity. As an import-dependent country, we want to reduce this dependency,” he noted.

“We have a carbon-neutral policy. Diversifying our energy resources is crucial for us. We want to benefit more from renewable energy sources. However, we are not turning our backs on fossil fuels either. We need to have an energy architecture.”

Despite its push toward cleaner energy, Türkiye must continue to meet immediate demand from conventional sources, Bayraktar noted. He said around 40 million vehicles are on the country’s roads daily, while approximately 22 million households rely on natural gas, underscoring the need to maintain stable fuel supplies.

Keyword: Renewables

The minister still said renewable energy would be the “keyword” for the economy going forward, with expanded capacity, storage solutions and system security critical to achieving long-term targets. Türkiye aims to become a carbon-neutral economy by 2050, though Bayraktar indicated the government is considering bringing some targets forward, including energy efficiency goals.

“We have a very strong goal to become a carbon-neutral economy by 2050. But we are considering advancing this target, potentially bringing it forward to 2035,” he said, adding that plans to implement a national energy efficiency program by 2040 could also be accelerated to 2030.

Türkiye is also deepening its international energy engagement, the minister said, noting that the country has invested in multiple cross-border projects and recently launched offshore drilling operations in Somalia.

One of most serious energy crises

The panel brought together senior policymakers, including Azerbaijan Energy Minister Perviz Shahbazov, Slovenian Environment, Climate and Energy Minister Bojan Kumer, and Francesco La Camera, head of the International Renewable Energy Agency (IRENA), all of whom highlighted the broader global implications of ongoing energy disruptions.

Shahbazov warned that the world is facing one of its most serious energy crises, pointing to risks surrounding the Strait of Hormuz, a key artery for global oil flows.

He said disruptions affecting up to 12 million barrels of oil could have far-reaching consequences, including increased fragility in Europe’s jet fuel supply.

“This is a global crisis. We all need to fight this crisis together. At this point, Azerbaijan has diversified its own supply routes. We supply 40 million barrels to 20 different countries. Recently, we have also started supplying natural gas to our European partners,” he noted.

He added that producer nations are also vulnerable to price volatility despite perceptions that they benefit from crises.

“Balanced prices are important for all of us,” said Shahbazov.

Coordinated action needed

Kumer said Slovenia, which imports all of its oil, has been hit by rising prices and declining volumes, particularly at a time of seasonal demand increases in agriculture.

“This crisis did not find us at the right time,” he said.

He stressed that the crisis underscores the need for coordinated action within the European Union.

“No country can manage such an energy crisis alone,” Kumer said, adding that shifting away from fossil fuels remains essential given limited domestic resources.

“Before the Ukraine war, we were importing natural gas from Russia. Renewable energy is the future of the world. Fossil fuel is not a resource that we possess,” he added.

Fossil fuel crisis

IRENA’s La Camera argued that the current turmoil reflects a structural weakness in a fossil fuel-based system rather than a conventional energy crisis.

“This is not an energy crisis. This is a crisis of the energy system being built on fossil fuels. This is a fossil fuel crisis. This will shift us more toward renewable energy,” he noted.

La Camera explained that renewable energy installations added in a single year now exceed decades of nuclear capacity growth. He cited countries such as Spain, where renewables account for a significant share of energy production, and Türkiye, which has been vastly investing in renewable energy sources, as examples of the transition already underway.

He warned that regions slow to embrace renewables risk losing economic competitiveness.

“For the economy to be competitive, the energy system must be strong. Europe still underestimates renewable energy resources. That is why Asia, which invests in renewable energy, is winning while Europe is losing,” La Camera said.

U.S. Ambassador to Türkiye Tom ​Barrack said on ‌Friday he expected Washington and Ankara to “soon” solve ​the issue of ​sanctions over Ankara’s ⁠purchase of Russian S-400 ​missile defenses.

“I think you ​are going to see the S-400 situation solved soon. ​From my boss’s point ​of view, acceptance into an ‌F-35 ⁠program is fine,” Barrack said at the Antalya Diplomacy Forum.

Türkiye was excluded from the U.S.-led multinational program in 2019, and Washington imposed Countering America’s Adversaries Through Sanctions Act (CAATSA) sanctions over its purchase of Russian-made S-400 air defense systems.

Ever since, Ankara has repeatedly called the move unfair and voiced hope that the sides could overcome the issue during U.S. President Donald Trump’s second term.

President Recep Tayyip Erdoğan raised the issue during the last September meeting with Trump at the White House. Trump later said the U.S. was “very seriously” considering the sale of F-35 jets to Türkiye.

In late 2024, Ankara secured a $7 billion deal with Washington for 40 F-16 jets. But talks have reportedly been dogged by Turkish concerns about the price and desire to buy F-35s instead.

Despite boasting NATO’s second-largest army, Türkiye often faced arms embargoes in the past. That pushed it to significantly boost domestic capabilities and curb foreign dependence over the last two decades.

Today, it produces a wide range of vehicles and arms types domestically, including its own drones, missiles and naval vessels. It’s also developing its own fifth-generation fighter jet.

Named Kaan, the stealth fighter is sought to replace the Air Force Command’s aging F-16 fleet, which is planned to be phased out starting in the 2030s.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Oil prices fell by more than 10% on Friday after U.S. President Donald Trump and Iran’s foreign minister said the Strait of Hormuz is now fully open, which would allow oil tankers to exit the Persian Gulf again and carry crude to customers worldwide.

The announcements came as a 10-day truce in Lebanon appeared to hold. The truce offered a pause in Israeli strikes on Lebanon and could clear one major obstacle to a deal between Iran and the United States and Israel to end weeks of devastating war.

In a social media post, Trump said Iran announced that the strait “is fully open and ready for full passage.”

Minutes earlier, Iranian Foreign Minister Abbas Araghchi posted on the social media X that the passage for all commercial vessels through the strait “is declared completely open” in line with the cease-fire in Lebanon. He said it would stay open for the remaining period of the truce.

It was not immediately clear what that meant for the U.S. blockade of the strait.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

To recover the energy ​output lost in the Middle East from the ‌conflict there will take about two years, Fatih Birol, the head of the International Energy Agency (IEA), said on Friday, while signaling that further emergency stock releases remain under consideration.

“That will vary ​from country to country. In Iraq, for example, ⁠it will take much longer than in Saudi Arabia,” Birol told an interview with ​Switzerland’s German-language daily Neue Zuercher Zeitung newspaper.

“However, we estimate it will take approximately two years ​overall to reach pre-war levels again,” he said.

Birol added that the market was underestimating the consequences of a ​prolonged closure of the Strait of Hormuz.

But he said production would improve significantly once the key waterway reopens; however, reaching full capacity would still take time.

Shipments of oil ​and gas that were already en route to their destinations before ‌the ⁠war in Iran began have now arrived, mitigating the impact of shortages, he said.

“But no new tankers were loaded in March. There were no new deliveries of ​oil, gas ​or fuels to ⁠Asian markets. This gap is now becoming apparent. If the Strait of Hormuz ​is not reopened, we must prepare for ​significantly higher ⁠energy prices.”

He said poorer countries could face the heaviest burden because weaker currencies and limited financial resources leave them more exposed to rising import costs.

Asked whether the IEA could carry out another release of emergency oil reserves after its March move, ⁠Birol ​said the agency was ready to ​act immediately and decisively.

“We’re not there yet, but it’s definitely under ​consideration,” Birol said.

In March, the agency released 400 million barrels from emergency reserves, the largest drawdown in the agency’s history.

Birol stressed reserve releases can only ease short-term bottlenecks, noting that the most important step for stabilizing energy supply is the reopening of the Strait of Hormuz.

Any move that helps reopen the waterway would be positive, he added.

Birol also said the IEA is tracking widespread damage to regional energy infrastructure, warning that markets should not expect an immediate return to normal even after the strait reopens.

He also warned that shortages of refined products such as kerosene and diesel could emerge if crude shipments fail to reach refineries, raising the risk of flight disruptions, cancellations, and industrial supply problems in some countries.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Russia’s top officials have outlined numerous proposals to President Vladimir Putin on how to kick-start the war economy after he scolded them for what amounts to the nation’s sharpest economic contraction in more than three years.

Russia’s economy, which contracted in 2022 but grew in 2023, 2024 and 2025, has outperformed most expectations and avoided the crash Western powers hoped to stoke by imposing the most onerous sanctions ever placed on a major economy.

But the strain of the war in Ukraine – the deadliest conflict in Europe since World War II – and double-digit interest rates slowed growth to just 1% last year. Putin said Wednesday the economy contracted 1.8% in the first two months of this year.

At the start of a Kremlin meeting with Russia’s most powerful economic officials Wednesday, Putin said manufacturing, industrial production and construction were negative in the first two months compared to the same period last year.

Putin said the trajectory of the economy was below expectations and asked officials for detailed options on what can be done to remedy the situation.

Kremlin spokesperson Dmitry Peskov said Thursday that the closed part of Wednesday’s meeting lasted several hours and included a free exchange of opinions.

“The members of the government’s economic bloc have many proposals to activate the economy and give it greater momentum,” Peskov told reporters. He declined to provide details.

Attendees included Prime Minister Mikhail Mishustin, Kremlin Deputy Chief of Staff Maxim Oreshkin, First Deputy Prime Minister Denis Manturov, Deputy Prime Minister Alexander Novak, Central Bank Governor Elvira Nabiullina and PSB bank CEO Piotr Fradkov.

Russia’s $3.1 trillion economy contracted 1.4% in 2022 but grew 4.1% in 2023 and 4.9% in 2024. It grew only 1% last year, and Moscow’s official forecast for this year is 1.3%.

Iran war boost

While there were serious concerns in Moscow about the economic slowdown ahead of the Iran war, the biggest energy supply crisis in modern history is likely to bolster the oil-producing economy.

The International Monetary Fund (IMF) on Tuesday raised its forecast for Russia’s economic growth this year to 1.1%, from 0.8% previously, due to higher oil and other commodity prices resulting from the Middle East crisis.

Still, according to Russian state statistics, the last quarterly contraction of such intensity as the first quarter of this year was likely in the first three months of 2023, when GDP declined by 0.8%.

In a speech on Thursday, Nabiullina, who has served as Putin’s central bank chief since 2013, said the Russian economy is grappling with an acute labor shortage just as the Iran war stokes inflation risk.

“The peculiarity of the current situation is that for the first time in modern history, our economy has faced shortages or limits on labor,” she said, adding that the shortage has created a new reality for both the state and for business. “Now we have the deterioration of external conditions, one could say, that is almost constant both in exports and imports.”

At the same Moscow conference, Finance Minister Anton Siluanov, who was also present at the Kremlin meeting, said the government is considering an early return to the foreign currency market after the ruble strengthened this month.

A stronger ruble helps the central bank fight inflation but is negative for economic growth as it eats into exporting firms’ profits, forcing them to cut investment, and makes Russian products less competitive.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.