Türkiye will scrap a ​special consumption tax (ÖTV) on diesel until the ⁠end of ⁠this month, according to a presidential decree published in ​the country’s Official ​Gazette on Thursday.

According ⁠to the decree, on Sept. 1 the diesel tax will be reinstated, rising incrementally by TL 3 ($0.0628) each month until it reaches TL 13.9006 per liter on Jan. 1, the same level as before the removal.

The price was set at TL 6 per liter between Oct. 1-31, and TL 9 per liter between Nov. 1-30.

The price will be TL 12 per liter during the last month of the year and will rise again to TL 13.9006 per liter after Jan. 1, 2027, according to the decree.

The decree also removes diesel from Türkiye’s sliding-scale tax adjustment system, implemented ⁠to limit the impact of rising oil prices following the outbreak of the U.S.-Israel-Iran war.

However, the decree ​said gasoline and liquefied petroleum gas (LPG) ⁠will remain in the sliding-scale ⁠system until ‌Oct. 1, when the ​system is set ⁠to be ⁠abolished.

Global energy prices have been fluctuating heavily in the past couple of weeks amid concerns that U.S.-Iran talks for ending the conflict have stalled.

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Norway’s $2.3 trillion sovereign wealth fund, the world’s largest, reported Wednesday a record profit of 1.75 trillion Norwegian crowns ($184.3 billion) for the first half of the year, supported by strong performance in technology shares.

Investing ⁠the Norwegian state’s revenues from oil and gas production, the fund owns on average 1.5% of all listed companies globally, making it the world’s largest single investor.

“The result is driven by good returns in the equity market, particularly from Asian technology stocks,” CEO Nicolai Tangen said in a statement accompanying the half-year results.

The fund’s first-half return beat a previous record of 1.5 trillion crowns set in the first six months of 2023, and corresponded roughly in size to the full-year nominal gross domestic product (GDP) of a nation such as Uzbekistan, a ⁠country of ⁠around 39 million people, a Reuters comparison showed.

Concentration of chips

Still, the fund’s management has repeatedly warned that future wars and economic depression could wipe out much of its holdings.

Tangen on Wednesday said the top 10 companies in its portfolio now represent 20% of the fund’s value, with most of those firms in the tech industry, raising the concentration risk associated with its index-based investment strategy.

“It’s chips, chips, chips, chips, chips … we’ve never seen such concentration ⁠before,” Tangen said.

Any change to this strategy would have to come from Norway’s parliament, a process that normally takes years. The fund late on Tuesday announced for the first time that ​it held a 0.05% stake in Elon Musk’s SpaceX worth $1.22 billion as of June 30, ​in an updated list of its holdings.

That stake was modest when compared with its other tech holdings.

It held a 1.28% stake worth $62 ⁠billion in ‌Nvidia, a 1.24% ‌stake worth $52 billion in Apple, a 1.17% stake worth $50 ⁠billion in Alphabet, a 1.27% stake worth $35 billion ‌in Microsoft and a 1.7% stake worth $34 billion in Taiwan Semiconductor Manufacturing, fund data showed.

Overall, the fund is ​invested in around 7,100 companies globally. ⁠It also invests in bonds, property and renewable projects.

SpaceX shares ⁠rallied sharply in the wake of its record-breaking IPO in late June, then ⁠pulled back sharply ​as investors questioned whether a lofty valuation of 77 times expected revenue could be justified.

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Turkish Airlines (THY) completed the longest nonstop flight in its history on Tuesday, flying Italian football giants Juventus directly from Australia’s Perth to Turin in a 16-hour, 27-minute charter operation.

The airline’s Boeing 777-300ER covered approximately 13,800 kilometers (8,575 miles) on the direct flight, according to flight tracking platform Flightradar24.

The special charter was arranged after Juventus concluded its pre-season tour of Australia, including the “Derby d’Italia” exhibition match against Inter Milan.

Before transporting the team, the aircraft operated a positioning flight from Istanbul to Perth under flight number TK3700, a journey lasting approximately 14 hours and 30 minutes.

Executives recently said THY plans to expand its nonstop long-haul network by deploying ultra-long-range aircraft from late 2027, enabling direct flights to destinations in Australia and South America.

The carrier says it serves more countries than any other airline through its scheduled network.

Under its 2033 strategy, Turkish Airlines plans a major fleet replacement and expansion to around 800 aircraft. It has orders in place for nearly 420 aircraft, including Airbus and Boeing jets, with negotiations continuing for an additional 100 Boeing planes.

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Türkiye will launch its first offshore wind tender in the first quarter of 2027, Energy and Natural Resources Minister Alparslan Bayraktar said Wednesday.

The government sees offshore wind among Türkiye’s most strategic renewable energy priorities. It aims to install 5 gigawatts (GW) of offshore wind power capacity by 2035.

The country has already designated four areas as installation sites, including the Saros Gulf, areas near the islands of Gökçeada, Bozcaada and the region off the coast of Edremit.

A draft tender specification for the offshore Renewable Energy Resource Zone (YEKA) auction has been published in the announcements section of the Energy Ministry’s website.

Industry representatives, investors and relevant organizations can submit their views on the draft specification until Aug. 17. A final tender specification will be prepared based on the feedback received.

Bayraktar said Türkiye would send a message to the world on its offshore wind ambitions ahead of the U.N. Climate Change Conference (COP31), which will be held in Antalya in November.

He noted that Türkiye would announce details of its first offshore wind YEKA ahead of COP31.

“We will announce the tender in September and hold the offshore YEKA auction in the first quarter of 2027,” Bayraktar stated.

“This tender will be a first for our energy sector. Our target is to reach 5,000 megawatts (MW) of offshore wind capacity by 2035,” he said.

“We do not see offshore wind merely as a new energy source. We also see it as an area that will make a balanced contribution to our country’s security of supply, support our domestic industry and increase qualified employment,” Bayraktar added.

Türkiye has, in recent years, intensified efforts to identify offshore wind energy zones, particularly in the northwestern part of the country.

Compared with onshore plants, offshore wind farms involve higher investment and maintenance costs, but they can generate electricity with fewer interruptions.

The YEKA scheme was introduced in 2016 to facilitate land allocation for investors, ease the deployment of large projects and encourage the domestic production of renewable energy technologies.

The government later unveiled updates to the model to draw greater investor interest. Key enhancements included simplifying post-tender permitting procedures and introducing financial incentives like exemptions from transmission fees.

Türkiye has so far held YEKA auctions totaling 7,800 MW and allocated an additional 3,800 MW of capacity in 2024 and 2025 under the updated auction model.

The country’s total installed capacity now exceeds 125,000 MW, and over 60% of this consists of renewable sources. Wind power capacity stands at more than 15,000 MW, while solar capacity has reached over 26,000 MW.

It plans to organize at least 2,000 MW of YEKA competitions every year, as it aims to raise combined wind and solar installed capacity to 120,000 megawatts by 2035.

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The business community hailed a new law establishing the legal framework for the government’s terror-free Türkiye initiative, saying it would lift investor confidence, spur regional development and brighten the country’s long-term economic outlook.

Lawmakers on Monday voted overwhelmingly in favor of the legislation, titled the Law on Strengthening National Solidarity and Social Integration, aimed at advancing a peace effort and the dissolution of the PKK terrorist group,

The law would end one of the world’s longest-running insurgencies, which has killed tens of thousands of people in Türkiye, fueled social division, and, according to President Recep Tayyip Erdoğan, cost more than $2 trillion (TL 95.51 trillion).

The business world described the legislation as “historic” and an important “milestone” for Türkiye’s economic future, saying economies grow faster in an environment of trust and stability.

‘Peace means more investment’

Mustafa Gültepe, chair of the Türkiye Exporters Assembly (TIM), said a Türkiye free from terrorism and security risks, with stronger social cohesion, would become more predictable for investors, more stable for manufacturers and more competitive for exporters.

Gültepe added that the legislation would strengthen positive expectations across a broad range of areas, including Türkiye’s sovereign risk premium, investment climate, regional development and foreign trade.

He also said it would enable more efficient use of public resources by strengthening coordination and reducing waste, creating a more predictable and sustainable environment for both the public and private sectors.

“For exporters, peace means more investment, more production, more trade and more exports,” Gültepe said, adding that TIM was ready to capitalize on the opportunities created by the new period.

Redirecting of resources

Burhan Özdemir, head of the Independent Industrialists’ and Businessmen’s Association (MÜSIAD), called the legislation “a historic decision” for Türkiye’s future and national unity.

He said dismantling the terrorist group marks the beginning of a “new era” that could accelerate economic development.

That could particularly go for eastern and southeastern Türkiye, a region that has long lagged behind economically due to persistent risks.

According to Özdemir, terrorism has cost Türkiye more than $2 trillion over the past four decades by slowing development and diverting resources away from productive investment.

“Now is the time to direct our resources not to defense but to development, production, employment and high technology,” he said.

Özdemir added their members would now work to increase investment, create employment opportunities for young people and strengthen production particularly in the east and southeast.

Strong guarantee for development

Foreign Economic Relations Board (DEIK) Chairperson Nail Olpak said the legislation marked “a historic threshold,” adding that every step toward permanently eliminating terrorism was welcomed by the business community.

He said a more predictable and secure environment would reinforce Türkiye’s competitiveness by encouraging greater investment, production, employment and exports, while also enhancing the country’s appeal to international investors.

“A Türkiye where the shadow of terrorism has been lifted, and security has been strengthened, is the strongest guarantee not only for social peace but also for economic development,” Olpak said.

He noted that confidence, stability and predictability consistently rank among the most important factors cited by the international business community.

Olpak also said stronger domestic unity and lasting security would support regional development and improve Türkiye’s global competitiveness, adding that the business world was fully aware of the economic and social benefits that the terror-free Türkiye initiative could generate.

‘Historic’ opportunity

Anatolian Lions Businessmen Association (ASKON) Chair Orhan Aydın described the initiative as a “historic” opportunity for the country’s future while stressing the importance of preserving social cohesion throughout the process.

“A Türkiye free of terrorism means a safer, more peaceful country with a stronger investment environment,” Aydın said.

He suggested that a more secure environment would make Türkiye more prosperous, improve its international competitiveness and encourage both domestic and foreign investment.

“A factory chimney producing smoke symbolizes not only production but also peace,” Aydın said, adding that the new period would provide a significant boost to investment and manufacturing while making Türkiye a more reliable destination for international investors.

He said businesses around the world naturally gravitate toward safe and predictable markets, expressing confidence that Türkiye would be among the main beneficiaries of a lasting improvement in security and stability.

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Inflation in the U.S. slowed in July and a measure of underlying price pressures also cooled, according to official data Wednesday that suggested higher oil and gas prices from the Iran war were only having a limited impact on broader costs in the economy.

Consumer prices rose 3.4% last month from a year ago, down slightly from 3.5% in June, the Labor Department said Wednesday. But inflation is still higher than before the Iran war began in February, when it was 2.4%. On a monthly basis, prices rose just 0.1% from June to July.

The modest decline could ease pressure on the inflation-fighters at the Federal Reserve (Fed) and may give them some room to maneuver ahead of potential rate hikes.

Yet prices are still rising more quickly than average wages, underscoring the struggle many Americans have had with more expensive groceries, gas, and health care, trends that have taken on a high profile in the fast-approaching midterm elections.

U.S. households have been battered by more than five years of elevated prices since the pandemic hit, and the July data is still well above the Fed’s long-term 2% target.

President Donald Trump’s Republicans are facing a stern test in upcoming midterm elections, with Democrats seeking to wrest control of Congress over his handling of the world’s largest economy.

Inflation has surged since Trump launched the war on Iran, with Tehran’s retaliatory action virtually blocking the critical Strait of Hormuz through which a fifth of global energy supplies normally transit.

Consumer inflation came in at 2.4% in February, before spiking to a three-year high of 4.2% in May.

In July, energy prices continued to lead the line in terms of price increases, with gasoline prices – a sensitive political issue – up 24.6% from a year ago.

Fuel oil, used by households for heating and in various industrial applications, was up 39.1% from the year before.

Still, the energy index overall was 1.5% lower than a month ago, indicating a downward trajectory for prices of those commodities as talks to end the war continue.

Excluding the volatile food and energy categories, core inflation also slipped to 2.5% in July from a year ago, down from 2.6% in June.

Core prices rose 0.2% from June to July. Monthly increases at about 0.2% would be low enough over time to bring inflation closer to the Fed’s 2% goal.

Still, oil prices remain elevated and gas prices rose in late July and August, suggesting overall inflation could accelerate next month. On Wednesday, gas averaged $4.04 a gallon nationwide, 16 cents higher than a month ago, according to the motor club AAA.

Key questions for Fed policymakers

Inflation has been pushed higher by a series of shocks to the economy, including Trump’s tariffs imposed last spring, higher gas prices stemming from the Iran war, and a surge in investment in artificial intelligence infrastructure that has boosted computer chip prices.

The key question for the policymakers at the Fed – not to mention for consumers struggling with high gas and grocery prices – is how quickly those one-time effects will fade or whether they will lead to persistently rising prices.

Wednesday’s figures could bolster officials at the Fed who believe the central bank can leave its key rate on hold at about 3.6% while inflation steadily declines on its own as those temporary factors fade.

Overall, price increases have stayed above the Fed’s 2% target for more than five years, suggesting that more than temporary factors may be at work. The cost of services such as health care, restaurant meals, and car maintenance are on average rising at more than 3% annually, and they aren’t particularly sensitive to gas prices or AI investment.

Rising costs for services often reflect higher wages, as companies charge more to offset the cost of higher pay. But incomes aren’t growing fast enough to sustain inflation, economists note.

It’s a confounding situation that has left many economists – and Fed officials – seeking more information to determine where inflation is headed.

“You’ve got all these things that are just not the way the economy used to behave,” Diane Swonk, chief economist at KPMG, said.

For many consumers, years of sharply rising grocery prices have led them to adopt a wide range of coping strategies, from comparison shopping to couponing, to cutting back on favorite foods.

Many firms still pass on higher costs

Some retailers, such as Walmart, have responded by rolling back food prices, a trend that could have lowered July’s inflation figures. Yet many other firms are still passing on higher costs.

Paint company Sherwin-Williams is planning an 8% price increase effective Sept. 1 to offset higher raw material costs, CEO Heidi Petz told analysts late last month. She said that because of the company’s strong relationships with suppliers, it was able to delay price increases until now.

“We are seeing the impact of higher oil and related cost pressures, and we expect continued volatility throughout the balance of the year,” she said.

Wednesday’s report comes as the Federal Reserve is sharply divided over whether it should hike its key interest rate to combat inflation. The Fed kept its rate unchanged, at about 3.6%, at a meeting late last month. But the vote was 9-3, with three dissenters favoring a rate hike.

And at a July 29 news conference explaining the decision, chair Kevin Warsh was vague about the Fed’s next steps, in keeping with his focus on reining in the central bank’s previous willingness to signal whether it was prepared to raise or cut borrowing costs.

“If inflation continues to be elevated… interest rates could well be part of that solution,” he said. “But I wouldn’t say it’s in isolation.”

Long-term interest rates rose after Warsh’s comments, suggesting investors worried that inflation could worsen in the coming months and the Fed might not lift borrowing costs to fight rising prices.

Complicating matters, the government said last week that employers had cut jobs in July, a sign of potential economic weakness. The Fed typically avoids rate hikes when hiring is faltering, because higher borrowing costs could slow the economy further.