Mekke Agreement: How Markets Could Be Affected?

President Erdoğan discussed potential market impacts of the recently signed Mekke Joint Defense Agreement between Turkey, Pakistan, and Saudi Arabia during an interview with Doha-based Al Jazeera Arabic TV. Erdoğan emphasized that the agreement resembles NATO's Article 5, stating that 'any attack on one would be met with collective defense by the three nations.' He also highlighted Turkey's role as a mediator in the U.S.-Iran standoff, stressing the importance of Muslim unity in promoting peace. The president criticized Israel's aggressive stance, vowing to continue supporting stability in Lebanon and Gaza. Erdoğan also noted Turkey's firm stance on developments in Libya and Sudan, while maintaining strong ties with Russia through 'phone diplomacy.' The interview also touched on defense industry files, including the pending F-35 agreement with the U.S.

Markets should monitor the long-term implications of this strategic pact, while keeping an eye on potential disruptions in oil markets if the U.S.-Iran conflict persists.