Economy
Türkiye’s exports to Syria jump more than 26% in H1
Türkiye’s exports to Syria rose 26.4% year-over-year in the first half of 2026, extending strong trade momentum with its southern neighbor as shipments of cement, food products and energy-related goods increased sharply, official data showed.
Exports totaled $1.28 billion in January-June, according to data compiled from the Türkiye Exporters Assembly (TIM), while export volumes climbed 36.6% from a year earlier to 3.18 million metric tons.
Trade between the two countries gained momentum after the ouster of longtime dictator Bashar Assad in late 2024.
Ankara was the main backer of the opposition forces that overthrew Assad and has since pledged to help Syria’s reconstruction and economic revival.
Mill products accounted for the largest share of exports at $103.9 million, followed by cement at $102.3 million and electrical and energy products at $80.1 million. Cement exports more than doubled from a year earlier, rising 116.8%.
The southeastern region of Türkiye remained the largest contributor to exports to Syria, accounting for $461.8 million during the period. Export volumes from the region increased 34.6% year-over-year, while export value rose 11.4%.
Celal Kadooğlu, a board member of TIM and head of its Syria Desk, said exports to Syria had increased by about 70% in 2025 and that the upward trend had continued this year.
He said closer integration of Syria’s banking system with the international financial system, improving security conditions, and preparations to fully reopen the Islahiye and Nusaybin border crossings would further support bilateral trade.
“The positive steps taken by the leadership of both countries reinforce our goals for the future,” Kadooğlu said.
He also expressed confidence that Syria’s revised customs tariffs, introduced in June and covering more than 1,000 products, would be reassessed in line with the two countries’ common trade objectives.
Kadooğlu said high tariffs on certain product groups had significantly increased exporters’ costs, noting that customs duties of up to $1,000 per metric ton could raise the total cost of a standard 20-ton truck shipment by around $25,000, including additional charges.
Reducing those costs through bilateral dialogue would both strengthen Türkiye’s export potential and improve access to essential goods in Syria at more affordable prices, he said.
Kadooğlu added that revising customs tariffs in line with mutual interests and reinstating the bilateral free trade agreement would be important steps toward making trade between the two countries more predictable and sustainable.
The United States on Thursday told its European allies to help lower global diesel prices by releasing strategic reserves “immediately,” with EU member states due to discuss the crisis on Friday.
Reports said the Trump administration had told Germany and France in particular to draw down emergency diesel inventories to help ease soaring global fuel prices or face a potential U.S. diesel export ban.
“Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,” U.S. Treasury Secretary Scott Bessent said in a post on social media.
EU member states will meet with the European Commission Friday to discuss a coordinated response to soaring fuel prices, a Commission spokesperson said.
Washington is piling on pressure to get European help with fuel costs, with U.S. President Donald Trump on Wednesday floating the possibility of banning diesel exports.
High energy costs loom as a threat to Trump’s Republican Party in next month’s midterm elections.
Europe’s relationship with Washington has soured under Trump due to tariff disputes and disagreements over military spending.
For the EU, releasing more stocks would represent a dilemma as it needs to balance the need to bring down fuel prices at home with maintaining high stocks for a possible worsening of the fuel crisis should Trump and Iran not reach a peace deal.
“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” a U.S. official told Agence France-Presse (AFP).
At G-20 trade ministers’ meeting in Milwaukee, U.S. Trade Representative Jamieson Greer struck a conciliatory tone, saying there was an “eagerness on both sides to work together” on the diesel issue.
And Trump told reporters in Texas on Thursday that he “may” ask European countries to release diesel reserves.
Europe has become increasingly dependent on U.S. fuel after banning Russian imports over Russia’s invasion of Ukraine and after the U.S.-Israeli war against Iran disrupted supplies from the Middle East.
‘Unexpected’
EU trade chief Maros Sefcovic told reporters Thursday that any move by the U.S. to ban diesel exports would be “unexpected for Europeans.”
He spoke on the sidelines of the two-day G-20 talks, after meeting with Greer.
Sefcovic told reporters that he did not go into details with Greer on energy exports.
But the transatlantic partners “decided to stay in close touch to avoid any surprises here,” he said.
“It would have very dramatic consequences for our economic performance,” Sefcovic said of any potential diesel export ban.
France’s minister delegate for international trade, Nicolas Forissier, told AFP in Milwaukee: “I can’t imagine that there will be a ban.”
He stressed the importance of diesel to the United States and European countries, adding both sides will “try to find solutions.”
“In France, we’ll try to find balanced solutions all over the world,” Forissier added. “If not with the Americans, it will be with other countries.”
U.S. Energy Secretary Chris Wright said Wednesday that the world would “hear announcements from our friends in Europe” to push diesel prices down.
Asked about a release from strategic reserves, the French presidency said no such demand had been made when Emmanuel Macron and Trump met on the sidelines of the U.N. General Assembly last week.
Macron would also soon convene a video meeting of G-7 leaders “to make progress on the various levers that can be used to address the rising fuel prices… including coordination on releasing reserves.”
Macron announced on Sept. 18 a plan for such a meeting. The G-7 gathering is expected in mid-October, according to Macron’s press office.
Average U.S. diesel prices have surged more than 70% to $6.39 a gallon since the start of the Iran war, according to AAA motor club data.
Fuel prices have caused living costs to soar, leaving Trump’s Republican Party fearing it could lose control of Congress in November’s midterm elections.
Artificial intelligence agents developed by OpenAI tried to erase traces of their activity after gaining unauthorized access to government websites, according to a report published Thursday.
Cybersecurity firm Asymmetric Security analyzed the activity of the agents – AI programs capable of acting autonomously – which targeted Australian government websites and other public bodies between March and September.
Asymmetric said it could not determine whether the agents’ cover-up was deliberate.
The report adds to investigations by OpenAI and independent researchers into a series of incidents disclosed since July, including the hacking of AI platform Hugging Face.
OpenAI itself described the attack on Hugging Face as the first of its kind.
These analyses aim to gauge the capabilities of autonomous AI tools, as their lapses fuel fears of losing control over the technology.
According to Asymmetric, the agents were able to refine their techniques in a matter of days, a process that typically takes traditional hackers months or even years.
The incidents reviewed in the report appear to have begun with “innocent tasks,” such as gathering Australian health statistics, which then went off course.
“Most of the activity we’ve reviewed so far involved routine research tasks, such as accessing public web content to answer questions,” an OpenAI spokesperson told Agence France-Presse (AFP).
“Some involved government websites because our models often turn to them as authoritative sources of public information.”
Asymmetric’s report found, however, that the agents opened private accounts on a website analytics service, which concealed their searches, and created temporary email inboxes, one of which was set to self-delete after 48 hours.
OpenAI acknowledged in late August that its models had sometimes tried, unsuccessfully, to erase or modify their own activity logs during internal tests.
The incidents have amplified calls to slow AI development, most notably from Anthropic CEO Dario Amodei, who wrote last month that he feared swarms of agents “taking over the entire internet.”
But there is no consensus within the industry or among regulators on how to proceed.
The Trump administration opposes any binding regulation that could hinder innovation, amid fierce competition with China.
On Tuesday, President Donald Trump met with tech executives, who adopted a voluntary code of conduct. No federal law specifically governs these models in the United States.
European consumer authorities are investigating nine video game companies, including France’s Ubisoft, over concerns their in-game virtual currencies might be violating users’ rights, the EU said Wednesday.
The bloc is coordinating the investigations by the Consumer Protection Cooperation Network, which brings together the competent authorities of the EU’s 27 states.
The network launched talks with the companies last year, but the EU executive said the approach “did not bring satisfactory results.”
The European consumer authorities later identified several games that needed further study, including “Candy Crush Saga,” “Minecraft” and “Clash of Clans.”
The EU said alongside Ubisoft the other companies involved in the probe included “Minecraft” maker Mojang, U.S. giant Riot Games, and Supercell, which makes “Clash of Clans.”
It added the network was separately looking at similar issues in Activision Blizzard’s mobile games “Diablo Immortal” and “Call of Duty.”
It would also probe whether those games had addictive designs and how the firm collects gamers’ personal data.
The bloc’s guidelines on in-game virtual currencies say games must show the real-world price of any required in-game items and currencies.
Games also must show clear information before any purchase, and companies must not force players into unwanted transactions.
Gamers should also be told they can withdraw from contracts within 14 days, including for unused virtual currency, the EU said.
“The industry must ensure that its games do not expose players – especially children – to harmful or unfair practices,” EU consumer protection chief Michael McGrath said.
“The game must be fair, and the rules must be respected.”
He added in a statement: “National authorities, with the support of the commission, will make sure they are enforced.”
European consumer organization BEUC welcomed the “important step” taken by authorities “toward protecting consumers, especially young ones, from the manipulative and unfair practices online that encourage excessive spending.”
The EU has also ramped up efforts to protect children online, announcing earlier this month rules that will force companies to make video games and social media platforms safe before minors use them.
The EU is also expected to unveil consumer protection rules known as the Digital Fairness Act that will cover the video game sector.
Treasury and Finance Minister Mehmet Şimşek said Thursday authorities had moved quickly to contain problems in the investment fund market and prevent them from developing into a systemic crisis, adding that further regulatory measures would be needed.
Speaking online at an S&P Global conference, Şimşek said authorities had “quarantined” troubled portfolio management companies and related funds and had begun the liquidation and resolution process.
The problem in the fund market has been prevented from turning into a systemic crisis, he said, according to a Turkish transcript of his remarks reported by Anadolu Agency (AA). But he noted additional regulations would be needed.
The fund turmoil erupted earlier this month after suspected price manipulation in a number of thinly traded stocks triggered heavy losses and redemption pressures at investment funds.
Almost half a million investors hold stakes in more than 100 Turkish investment funds with combined assets of $20 billion that authorities ordered to be liquidated this month.
Şimşek said the aim was to stop contagion from spreading to the rest of the system, stressing that authorities “have largely succeeded.”
He acknowledged what he said was a “limited” impact, but said “we are not talking about a systemic problem. We will continue to deepen capital markets.”
Türkiye on Tuesday established a fund coordination council chaired by the vice president to oversee the rapid liquidation of the funds. The State Supervisory Council (DDK) has also been tasked with examining the crisis.
The coordination board is due to meet Friday.
Earlier Thursday, Şimşek said authorities were taking steps to ensure investors in troubled funds receive payments as quickly as possible.
The remarks came after the Capital Markets Board (SPK) said it would begin making interim payments to investors in the funds that were ordered to shut down.
Investors in asset managers Tera Portföy, Pusula Portföy, Atlas Portföy and Hedef Portföy will receive their full net investment amount if it is below TL 1 million ($20,404). Investors whose net investment amount is TL 1 million or above will receive TL 1 million as an interim payment.
The procedure will start with money market funds, the SPK said.
In a separate statement, the SPK said the Savings Deposit Insurance Fund (TMSF) opened up “voluntary refund accounts” for those who want to voluntarily return “excessive gains” made as a result of fund sales carried out before liquidation of the funds.
Under Turkish legislation, financial manipulation offenses can be pardoned, or sentences can be reduced if a person “shows remorse” by paying to the Treasury twice the amount of the benefit they obtained.
Speaking separately on Thursday, President Recep Tayyip Erdoğan said developments in the fund market would not pose a threat to the economy.
“We are successfully overcoming the problem that emerged in a certain part of the fund market,” Erdoğan said. “Within the framework of capital market rules, we are resolving this matter quickly, with fairness and justice in mind and without allowing anyone’s rights to be taken away.”
He said authorities would not allow the issue to become a threat to Türkiye’s economic security or social stability.
Authorities are investigating the asset managers for alleged stock manipulation and have arrested 61 people, including top financial executives, as of Thursday.
Türkiye’s factory activity remained in contraction territory in September as the Middle East war continued to weigh on companies, a closely watched survey showed on Thursday.
S&P Global said on Thursday that its Türkiye Purchasing Managers’ Index (PMI) fell to 47.9 in September from 48.1 in August, with firms citing the war in the Middle East as a drag on new orders and output.
Operating conditions have now moderated on a monthly basis for 2-1/2 years, with input cost inflation reaching a four-month high in September as fuel, oil and transportation costs rose, tied to the Middle East conflict.
Softer demand conditions led to a further slowdown in new orders in September. New export orders also eased as international demand remained muted.
Uncertainty around geopolitical conditions put the handbrake on growth in the sector but the average PMI for Q3 was slightly higher than in Q2, suggesting “some tentative signs of recovery,” said Andrew Harker, economics director at S&P Global Market Intelligence.
Factory activity across Europe and Asia showed signs of resilience and remained firm last month, driven partly by the global AI spending boom, even as the energy price shock from the Iran war kept inflation elevated, surveys showed on Thursday.
Rising inflation pressures across the globe have pushed several central banks, including the Federal Reserve (Fed) and European Central Bank (ECB) to start hiking interest rates with more increases expected.
This has contributed to a sharp sell-off in bond markets, pushing up borrowing costs for firms already hit by increased production costs.
However, surveys show that, for now, many factories are reaping the benefit of a surge in demand for their products.
S&P Global’s Eurozone Manufacturing Purchasing Managers’ Index (PMI) rose to 52.9 in September from 52.7 in August, its highest level since May 2022, partly due to stronger demand for artificial intelligence-related goods.
Growth was broad-based across the bloc, with the Netherlands leading the expansion. Germany, the region’s largest economy, recorded solid growth while expansion was modest in France, Italy and Spain.
“The PMIs continue to paint a stronger picture of eurozone industry than the latest data. The sustained strength in surveys points to building underlying momentum over Q3 and to improved industrial support for growth,” said Iain Simmons, economist at Oxford Economics.
“The strength was concentrated in demand for capital goods, specifically AI and defence equipment, while consumer goods demand fell amid price pressure … However, faster cost and selling-price expectations will weigh on the outlook, so we expect the sector’s contribution to be stronger but uneven in Q3,” Simmons said.
South Korea and Taiwan accelerate, Japan lags
In Asia, manufacturing in major exporters Japan, South Korea and Taiwan also improved last month, benefiting from AI optimism.
South Korea, in particular, saw factory activity grow in September at the biggest margin in four months, as export demand grew at the fastest pace in 15.5 years.
Taiwan, a key player in the AI field, saw its PMI hit 56.7 in September, up from 54.7 in August. The 50-level divides expansion from contraction.
“Both new orders and production growth hit the highest for around five-and-a-half years, with anecdotal evidence often linking the expansions to the combined strength of the semiconductor and automotive sectors,” said Usamah Bhatti, economist at S&P Global Market Intelligence, about South Korea.
On Wednesday, surveys showed that China’s factory activity also expanded last month as easing weather disruptions allowed factories to resume operations.
Japan’s S&P Global PMI declined in September to its weakest in six months as output and new orders slowed, although new export orders rose for a ninth straight month due to robust demand from Asia and improved sales to the U.S.
Still, cost pressures remained elevated, with firms continuing to raise selling prices at one of the sharpest rates since late 2022, the Japanese survey showed.
India’s manufacturing sector expanded at the fastest pace in seven months, reviving hiring and lifting business confidence.
Factory activity for other Asian economies was patchy. While Indonesia and Vietnam saw activity expand, the Philippines and Malaysia contracted, surveys showed.
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