Economy
Türkiye proved reliable energy transit partner amid crises: Erdoğan
President Recep Tayyip Erdoğan on Friday said Türkiye has proven to be a reliable energy transit partner and key actor for peace, stressing that its infrastructure has strengthened its role in regional stability.
Türkiye is determined to advance energy diplomacy alongside its broader peace efforts, Erdoğan told the second edition of the Istanbul Natural Resources Summit.
The event was organized in cooperation between Turkuvaz Media, Türkiye’s leading media group and Daily Sabah’s parent company, and the Energy and Natural Resources Ministry.
Erdoğan pointed to the effects of the Russia-Ukraine war and the U.S.-Israel-Iran conflict, saying recent crises triggered severe volatility in energy prices and raised concerns over global supply security.
The Iran war has triggered what is being described as the largest ever energy crisis because of the near-closure of the Strait of Hormuz.
Iran has established de facto control over the waterway, a chokepoint for about a fifth of the world’s oil supply. The resulting surge in energy prices has pushed inflation higher and fanned fears of an economic downturn.
Erdoğan said the conflicts had demonstrated Türkiye’s indispensable role in secure energy supply and further strengthened its strategic importance.
“Türkiye is the strongest bridge, transit and junction point between geographies with rich energy resources and countries that need them,” he noted.
‘Changed paradigm in energy’
Heavily dependent on energy imports to meet its needs, Türkiye has been vastly investing to achieve “full energy independence” through expanded domestic oil and natural gas production, renewable energy investments and international energy partnerships.
Türkiye currently receives natural gas through five pipelines, including two from Russia, two from Azerbaijan and one from Iran, while also diversifying supplies through liquefied natural gas (LNG) infrastructure.
“Türkiye now has a massive energy infrastructure that procures natural gas from more than 50 companies across 39 countries,” Erdoğan said.
He added that Türkiye plans to raise its daily LNG regasification capacity from 161 million cubic meters to 200 million cubic meters through new investments.
Erdoğan said the government fundamentally transformed the country’s energy strategy over the past decade through large-scale investments in exploration, storage and transmission infrastructure.
“We changed the paradigm in energy,” he said. “With the motto ‘Only those who search can find,’ we made major investments in this field over the last 10 years.”
Black Sea gas production to double in 2026
Erdoğan highlighted Türkiye’s gas production in the Sakarya field in the Black Sea, the largest natural gas discovery in the country’s history.
Daily production from the field has reached 9.5 million cubic meters, enough to supply millions of households.
The output is expected to increase to 20 million cubic meters per day in 2026 with the commissioning of Türkiye’s first floating gas production platform, Osman Gazi, Erdoğan said.
“Thus, we will be able to meet the energy needs of 8 million households from the Black Sea,” he noted.
The president said a third production phase planned for 2028 would increase output to 45 million cubic meters per day, supplying up to 17 million households with domestically produced natural gas.
Domestic oil production
Erdoğan also emphasized the growing importance of the Gabar field in southeastern Türkiye, saying it now accounts for 44% of the country’s domestic oil production.
He described the discovery as the largest oil find in the republic’s history and said the region, once associated with security concerns and terrorism, is now seeing increased investment, tourism and employment.
Following the Gabar discovery, Erdoğan said authorities identified four additional exploration areas in Diyarbakır province and plan to drill 24 wells over the next three years.
Türkiye aims to transform its state energy company into a producer of 1 million barrels of oil and natural gas per day through expanded domestic and international exploration efforts, he added.
Overseas energy partnerships expand
Erdoğan said Türkiye is also strengthening its global energy diplomacy through partnerships in Somalia, Pakistan, Libya and Central Asia.
He described offshore drilling operations in Somalia as Türkiye’s first deep-sea exploration project abroad and said operations are expected to be completed within six to nine months, depending on weather conditions.
“Our hope is to deliver good news to the brotherly Somali people, who have struggled with instability and famine for many years,” Erdoğan said.
He added that Türkiye is also working with the Syrian government on joint projects in the oil and mining sectors, saying regional normalization could create further cooperation opportunities.
Renewables, nuclear and critical minerals
Erdoğan said Türkiye continues to expand investments in renewable energy and nuclear power alongside fossil fuel production.
He noted that the country has become the world leader in boron reserves and said rare earth element discoveries in central Eskişehir’s Beylikova district could elevate Türkiye into a major global player in critical minerals.
The president also highlighted lithium carbonate production efforts in Eskişehir’s Kırka region and ongoing work to establish an industrial-scale facility with an annual capacity of 600 tons.
Erdoğan said the Akkuyu Nuclear Power Plant marked a turning point for Türkiye’s nuclear ambitions, while investments in solar, wind and hydroelectric energy represented some of the largest clean-energy projects in the country’s history.
“Türkiye is not a spectator in this race; it aims to become a game changer,” he said.
He reiterated that achieving full energy independence remains one of Türkiye’s strategic priorities.
Importance of energy security
Also addressing the event, Energy and Natural Resources Minister Alparslan Bayraktar said that the recent Iran-centered conflict once again demonstrated the importance of energy security and revealed how fragile the global economy can be.
Bayraktar said that in an era marked by wars and major economic upheavals, and the entry into the age of artificial intelligence and a succession of major technological advancements, “the world is undergoing a critical energy transition.”
“The recent war centered around Iran has once again demonstrated the importance of energy security and how fragile the global economy can be in this regard,” Bayraktar said.
Moreover, he underscored that Türkiye has emerged as one of the best-prepared countries to withstand the crisis.
“Since 2002, thanks to the strong political will you have demonstrated and the policies we have implemented under your leadership, Türkiye has become one of the countries that faced this crisis in the most prepared and resilient manner,” he further said, referring to President Erdoğan.
Moreover, he suggested that the National Energy and Mining Policy “became the main road map for our vision of a ‘Fully Independent Türkiye in Energy and Mining.'”
Also noting that Türkiye possesses one of the world’s largest deep-sea drilling fleets and is conducting oil and gas exploration both domestically and abroad, Bayraktar said, “We explored areas on land that had never been visited before, carried out seismic surveys and drilling operations, and continue to do so.”
In line with this, he also recalled historic discoveries in the Sakarya and Gabar regions, referring to vast gas and oil reserves on the country’s northern coast and in Şırnak province.
Referring to the energy transition and technological shifts, he said that as Türkiye, “we are also preparing a new energy architecture for our country in this new era.”
More infrastructure projects
“Our primary goal here is to position Türkiye as a central nation that has ended its dependence on foreign energy, strengthened its energy security and enhanced regional integration,” he added.
He added that under the new energy architecture, Türkiye plans to maximize the capacity of strategically important oil and natural gas pipelines such as TANAP, TurkStream, the Baku-Tbilisi-Ceyhan Pipeline and the Iraq-Türkiye Crude Oil Pipeline, all of which play key roles in the energy supply security of both Türkiye and the wider region.
“We will strengthen our energy ties by developing additional infrastructure projects with neighboring and regional countries in oil, natural gas and electricity under a win-win approach,” he said.
“Extending the Iraq-Türkiye Oil Pipeline to Basra and transporting Turkmenistan’s natural gas to Türkiye and Europe via the Trans-Caspian Natural Gas Pipeline will be among the key priorities of this new era,” he maintained
Türkiye is also aiming for multi-faceted integration in the electricity sector, Bayraktar said.
“Through the Azerbaijan-Georgia-Türkiye-Bulgaria Green Electricity Transmission Agreement we signed in Baku last year, we aim to deliver renewable energy generated in Azerbaijan to Europe,” he explained.
He noted that the country is also working on a mega power transmission line that will stretch from Saudi Arabia to Türkiye and integrate with neighboring countries in the region. “We believe this will serve as an alternative energy corridor for both our country and Europe.”
Türkiye’s new energy architecture will feature greater connectivity and more infrastructure projects, he added.
“By developing our liquefied natural gas infrastructure, we will be able to supply higher volumes of LNG to Southeast Europe and our other neighbors,” he said.
Nuclear energy ‘not a choice, but a necessity’
Highlighting the growing role of electricity, Bayraktar said: “Electricity lies at the center of our new energy architecture.”
“Therefore, we will raise our renewable energy targets even higher. In this context, we foresee a total investment of $30 billion for a strong grid infrastructure required by our advanced renewable energy portfolio.”
He also said Türkiye views nuclear energy, with its baseload generation capability, as “not a choice, but a necessity” for supply security.
“The process that began with the Akkuyu Nuclear Power Plant will open the door to the nuclear era in Türkiye’s energy history,” the minister said.
Bayraktar also emphasized Türkiye’s goal of becoming “a manufacturing hub” during the energy transition process.
“For this reason, we attach great importance to investments in rare earth elements and critical minerals. We aim to increase investments in R&D and technology while supporting the development of the domestic industry,” he said.
Noting that rare earth elements form the backbone of many strategic sectors ranging from energy technologies and battery systems to electric vehicles and the defense industry, Bayraktar said the foundation of an industrial facility at the pilot rare earth elements site in Beylikova would soon be laid.
He added that Türkiye views energy not only as a driver of economic growth, but also as a key to regional peace, stability and shared prosperity.
Some of the world’s most prominent central bankers will attend the Istanbul Economic Forum this week to discuss inflation, monetary policy and the global economic outlook, the forum’s website said.
U.S. Federal Reserve (Fed) Governor Christopher Waller, Bank of England (BoE) Governor Andrew Bailey, Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos and Banque de France Governor Emmanuel Moulin are among those due to attend the two-day forum on Thursday and Friday.
Other expected attendees include the central bank governors of Greece, the Netherlands, Hungary, Saudi Arabia, Malaysia, Azerbaijan and Kazakhstan, according to the website compiled by the Central Bank of the Republic of Türkiye (CBRT).
In total, 16 central bank governors and eight deputy governors, as well as the finance ministers of Türkiye and Egypt and officials of international financial institutions, are scheduled to join the meeting.
The forum said participants will discuss topics including navigating a fragmenting global economy, monetary policy under uncertainty, debt dynamics, and the implications of artificial intelligence and digital innovation for macroeconomic policy.
The Federal Reserve website included Waller’s planned speech at the conference on its schedule for Thursday.
Türkiye plans to transform the Development Road project into a multi-billion-dollar link carrying oil, natural gas and electricity from Iraq and the Gulf to Europe, according to Energy and Natural Resources Minister Alparslan Bayraktar.
Bayraktar, who met with Iraqi Oil Minister Basim Mohammed Khudair in Ankara on Friday, said Türkiye aims to turn the Development Road into a strategic “energy corridor.”
Unveiled in May 2023, the project is a $20 billion regional infrastructure initiative designed to facilitate the transport of goods from the Gulf to Europe via the Grand Faw Port in Basra in southern Iraq. The port would be linked to Türkiye and subsequently to Europe through an extensive network of railways and highways.
In April 2024, Türkiye, Iraq, the UAE and Qatar signed a memorandum of understanding (MoU) for joint cooperation on the project.
Bayraktar said oil and natural gas transported along the route could alone generate an annual economic value of around $80 billion if the project’s energy infrastructure is developed alongside its transportation network.
“We are determined to build the Development Road as a strategic ‘energy corridor,'” he told Anadolu Agency (AA), noting that developing the energy infrastructure alongside the route will greatly boost its economic value.
Bayraktar said Iraq’s oil resources offered significant potential for the project’s energy dimension and that the route could eventually carry up to 2.5 million barrels of oil per day (bpd).
Iraq currently produces around 4 million bpd, while Kuwait has a production capacity of around 2 million bpd.
Qatari gas could be transported through Iraq
Bayraktar said the Development Road also had significant potential for natural gas transportation, particularly by providing an alternative route for Qatar’s gas exports to Europe.
Qatar, one of the world’s largest gas exporters, currently ships most of its gas as liquefied natural gas (LNG).
Bayraktar said Qatar’s LNG exports rely heavily on the Strait of Hormuz and that transforming the Development Road could provide an alternative route for some of the country’s gas.
He said the initiative could therefore evolve from a project aimed at strengthening trade and transportation links between Iraq and Türkiye into a multidimensional corridor encompassing oil, natural gas and electricity infrastructure.
Ceyhan could become global energy hub
Bayraktar said alternative routes to the Strait of Hormuz had become increasingly important at a time when energy security and supply diversification were gaining greater significance.
Extending the Kirkuk-Ceyhan pipeline, the current infrastructure connecting Iraqi oil to Türkiye’s Mediterranean export terminal at Ceyhan, to Basra and increasing its capacity could provide a strong alternative to the Gulf region and the Strait of Hormuz for oil transportation, Bayraktar stated.
Türkiye also aims for its state-owned Turkish Petroleum Corporation (TPAO) to play a more active role not only in the Kirkuk fields but also in other oil fields in Iraq, Bayraktar said.
“We will continue to strongly pursue concrete projects in close cooperation with the new Iraqi government,” he said.
“We aim to reach the target of supplying 1 million barrels of crude oil, increase trade and turn Ceyhan into a global energy hub,” Bayraktar said.
President Recep Tayyip Erdoğan said Monday that Türkiye had never allowed itself to fall behind in the space race, stressing that space should not be the preserve of a handful of powerful nations.
“The space race cannot be a competition between just a few countries,” Erdoğan told the International Astronautical Congress in the southern city of Antalya.
It is the first time Türkiye is hosting the event that brings together scientists and delegates from 111 countries.
Erdoğan set out what he called Türkiye’s principle on space: that it should not be treated as a prize for whoever gets there first.
“Militarizing space and turning it into a vehicle for an arms race would be utterly wrong,” he noted.
Erdoğan said Türkiye is now one of the few countries able to design, develop, build, test and operate its own satellites in orbit.
He pointed to the IMECE satellite, which he said gave Türkiye an important high-resolution Earth observation capability, and to the Göktürk satellites, which he said had expanded its ability to observe and survey from space.
Türkiye has also launched the Türksat 5A and 5B communications satellites. In 2024, it launched and put into service Türksat 6A, its first domestically designed and built communications satellite.
Erdoğan said that satellite had confirmed the country’s engineering capability, industrial base, human resources and confidence in space technology.
Space, he said, is not only about satellites.
In 2024, Türkiye sent Alper Gezeravcı to the International Space Station on the country’s first crewed space mission.
A suborbital research flight by Tuva Cihangir Atasever followed, giving Türkiye experience in microgravity research.
Erdoğan called these steps meaningful but not sufficient, and said Türkiye was pursuing bigger goals.
Moon program
Erdoğan said one of the most ambitious goals of the National Space Program, announced in 2021, is a mission to the Moon.
He said Türkiye had set that goal five years ago and had since turned it into a concrete program.
“We have completed the production, assembly, and integration of the lunar rover we developed as part of our Moon Research Program,” Erdoğan said. He said the spacecraft was now undergoing system-level environmental tests.
The vehicle weighs about 3.5 metric tons and has a domestic content rate of more than 80%, which he called a source of great pride.
He added that experience gained on projects such as IMECE and Türksat 6A was being carried over to the lunar mission, so that Türkiye did not have to start from scratch each time.
Spaceport in Somalia
Erdoğan said that having satellites was not enough to be a space power and that access to space was also essential.
He said Türkiye had given priority to launch access and a spaceport in its space program and had begun construction of a spaceport in Somalia. He said the project would strengthen Türkiye’s access to space and help develop the space ecosystem of the African continent.
The euro plunged to its lowest level against the dollar in 17 months on Monday amid growing concerns about France’s high debt and deficits and political future, which have sent its government bond yields higher.
An underwhelming 2027 budget plan unveiled last week fanned concerns that government spending will remain high ahead of next year’s presidential elections, in which the far-right Marine Le Pen, seen as a fiscal populist, stands a chance of winning.
That has rattled bond investors at a time when interest rates – and hence borrowing costs – are rising in developed economies worldwide to combat inflation.
French debt is projected to rise to nearly 122% of the country’s gross domestic product (GDP) next year, despite billions of euros in planned spending cuts.
That has sent its 10-year government bond yield to 4.8%, the highest since the 2011 eurozone bond crisis.
“The fact that French bonds and the euro sold off last week, and the downward momentum could persist this week, is a sign that Europe is out of favor with investors and bond market vigilantes are watching developments in the eurozone closely,” said Kathleen Brooks, research director at XTB.
A call for snap elections in Spain by Prime Minister Pedro Sanchez also surprised investors, after lawmakers rejected a hotly debated housing relief bill from his Socialist-led minority government.
“France had already been under pressure due to questions over fiscal credibility and political stability,” said Patrick Munnelly, market strategist at Tickmill Group.
“Spain now adds another layer of uncertainty,” he added. “Europe’s political risk is weighing on the euro.”
Stocks, meanwhile, were broadly higher, with the Nasdaq opening higher after hitting another all-time high on Friday in the wake of weak U.S. jobs data, and the broader Dow also still near record territory.
That tempered expectations of an imminent rate hike by the Federal Reserve (Fed), and fueled optimism on Asian and European equity markets that the AI-fuelled rally still has room to run.
Paris was dragged lower, however, by Schneider Electric after the industry group unveiled a $22.6 billion all-cash deal to buy the U.S. engineering software specialist PTC, which pulled its share price down nearly 10%.
Lower oil prices provided additional support, after G-7 countries, in coordination with the International Energy Agency (IEA), agreed on Friday to immediately release 100 million barrels of diesel and crude oil to ease supply concerns caused by the U.S.-Iran war.
Exports of Middle East oil, excluding Iran, surpassed their pre-war levels last week despite attacks on ships in the Strait of Hormuz, according to data from the maritime tracking firm Kpler.
But Saudi Aramco chief executive Amin Nasser on Monday described oil stockpiles as “scarily thin” as the European winter looms.
France and Germany are seeking a new rapid-response trade tool that the European Union would use to position itself better against countries that harm the bloc economically in a new world where trade is increasingly used as a weapon.
German officials said the EU needed a tool as powerful as the Section 301 tariffs imposed by the U.S. or China’s restrictions on exports of critical minerals.
The new measure would not target any specific country, but highlights dumping, widespread subsidies and restriction of currency convertibility – market distortions that many EU leaders say China is engaged in.
A French-German document published on Monday, 10 days before EU leaders discuss Chinese trade imbalances at a summit in Brussels, said “systemic and persistent market distortions” jeopardize the European economy and particularly its industrial base, with widespread job losses.
The bloc, said the document, needs to deploy its trade defense tools more swiftly and efficiently, with more investigations and a broader approach to cover whole sectors.
France and Germany also said the European Commission should propose two new instruments as soon as possible to focus EU efforts on diversification and securing economic security.
The first, which the Commission has already mentioned, would seek to limit companies’ reliance on single sources for certain critical supplies.
The second would limit access to the EU single market for countries that undermine fair market conditions through political or economic means, without specifying what the trigger for EU reaction would be or what action the EU should take.
The paper said that any proposal by the Commission to activate counter-measures against another country should be adopted unless a qualified majority of EU members opposed – a lower hurdle than for some trade measures.
The paper also said the Commission should be able to activate such new measures swiftly, which German government officials said could mean a matter of days.
Legislation to enact a new instrument would still need approval by EU governments and the European Parliament.
A French presidential adviser said it was urgent for the EU to take action, that the imbalances with some trade partners had become unsustainable, and that France and Germany were keen for the bloc to deploy existing anti-dumping measures as soon as possible.
“France and Germany are very keen to put an end to the naivete on trade,” the adviser told reporters.
Brazilian assets were trading higher on Monday after right-wing Senator Flavio Bolsonaro, the son of ex-leader Jair Bolsonaro, came in first in the first round of Sunday’s presidential election.
The Bovespa benchmark stock index gained more than 8% and the country’s currency strengthened against the U.S. dollar following the vote.
The eldest son of former President Jair Bolsonaro won 47% of the votes and will face leftist incumbent President Luiz Inacio Lula da Silva, who secured about 45% of the vote, in a runoff on Oct. 25. Polls had forecast Lula would lead the first round of voting by around three percentage points.
Investors cheered on Monday morning as Bolsonaro’s strong showing was matched by gains for his allies in Congress. Analysts say a friendlier legislature would make it easier for him, if elected, to push through a pro-market agenda of tighter public spending, privatizations and tax cuts.
“Brazil wants change,” Bolsonaro said on Sunday evening, heralding the “end of the era of (Lula’s) Workers’ Party.”
Shares in retailer Magazine Luiza, stock exchange operator B3, lender BTG Pactual, homebuilder Cyrela and conglomerate Cosan jumped more than 20% each, putting them among the top gainers.
J.P. Morgan upgraded Brazil’s equities to “overweight” on Monday, saying a more favorable political backdrop after recent election developments had improved the outlook for the region’s largest market and could drive a period of outperformance.
Brazil’s real currency strengthened more than 4% against the U.S. dollar in early trading, moving below 5.00 per greenback, from around 5.22 previously, in line with analyst forecasts and with the currency’s performance four years ago when then-President Jair Bolsonaro did better than expected in the first-round vote against Lula.
The elder Bolsonaro went on to lose to Lula in the second round of that election and was subsequently convicted of trying to carry out a coup to overturn the result. The former president was sentenced to about 27 years in prison and is currently under house arrest.
Brazil’s international debt also rallied on Monday, while broader fixed-income markets were jittery. The 2056 bond was up 1.4 cents on the dollar to bid at 93.5 cents, Tradeweb data showed.
‘The market wants change’
Bolsonaro has pitched himself as a “more centered” version of his father to investors concerned about Brazil’s burgeoning fiscal pressures.
“It remains to be seen whether the senator would ultimately prove more fiscally responsible than Lula would be in a fourth non-consecutive presidential term. However, markets are likely to give him the benefit of the doubt,” said Thierry Larose, portfolio manager at Vontobel.
If he is elected, Bolsonaro would enjoy some room to maneuver with Congress after his Liberal Party emerged as the biggest winner in congressional races on Sunday.
Bolsonaro’s party increased its representation in the Senate from 15 to 28 seats, the strongest result for a party since Brazil’s return to democracy in 1985. It also is projected to secure 121 seats in the lower house, up from its current 98 seats.
“The likelihood of advancing reforms is much greater,” said Pedro Paulo Silveira, an analyst at Terra Investimentos. He noted that during the previous Bolsonaro government, reforms often depended on costly political bargaining or stalled altogether.
Analysts also expect the real to continue strengthening into 2027. Societe Generale forecast that it would move to 5.10 by the end of 2026, with scope to move below 5.00 in the first half of 2027. Morgan Stanley forecast the real could strengthen past 4.90 and toward 4.50 in the first quarter of next year.
“The market wants change, it wants reform; it doesn’t want a high public deficit; with the current government, all of this will continue,” said Pedro Galdi, investment analyst at the AGF Investments platform.
Bolsonaro’s strong showing is likely to boost market confidence in the near term, said Bryan Harris, a managing partner at Sabio.
“The market will be looking for clear signals from Bolsonaro that he is serious about tackling the country’s problems,” Harris said.
Heading into Sunday’s vote, most private polls, which largely underestimated the younger Bolsonaro’s strength, had shown the 45-year-old senator and Lula, who will turn 81 later this month, about even in a runoff vote.
Addressing a crowd at a hotel in Sao Paulo, Lula said he had been convinced he would win the election in the first round.
“Starting tomorrow, we begin a new campaign,” the leftist leader said, promising to show voters what he had accomplished as president.
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