“The attacks will continue and we can do without American goods.” These few words sum up the mood of Turkish President Recep Tayyip Erdogan as the Turkish lira has drastically dropped against the US dollar (USDTRY) and remains extremely fragile. Whatever Erdogan says, Turkey’s economic prospects are assessed as unfavorable if relations between Ankara and Washington do not return to a better level.
The sanctions decided by the Trump administration immediately impacted the quality of the Turkish debt on the financial markets and the Turkish government negotiators would have no other proposal than to at least stabilize a situation that could degenerate at any moment. According to Cyceon, the Turkish government reportedly underestimated the annoyance of its US counterpart by not taking seriously the multiple verbal warnings of President Donald Trump himself.
In the background, Iran, Russia and the increased quality of their relations with Turkey are the real reasons for US resolve. In addition to Turkish foreign policy seen by POTUS as broadly and currently unfavorable to US interests in the Middle East, the interactions between Ankara, Tehran and Moscow seem to be the cornerstone of this Turkish-American crisis.