Simsek Says Middle East War Reshapes Regional Economic, Security Landscape

(MENAFN) Turkish Treasury and Finance Minister Mehmet Simsek said Saturday that the ongoing conflict in the Middle East would bring major changes to the region's economic and security arrangements, prompting governments to reconsider strategic dependencies, seek alternative trade corridors and expand cooperation with neighboring countries.

Speaking during a discussion titled "Towards a Rocky Recovery: National Economies After the Wars in the Middle East" at the TRT World Forum, Simsek warned that the conflict had created a significant disruption to global supply chains, particularly affecting energy markets and generating economic repercussions far beyond the Middle East.

"The one that we have been experiencing is two times the 1973-74 oil embargo and seven times the Russia-Ukraine energy destruction," he said, comparing the current supply disruption with previous major energy crises.

Simsek explained that several countries across the region were already facing economic contraction, while states directly affected by the fighting had recorded considerable reductions in both exports and imports.

He also highlighted the broader international consequences, noting that global economic expansion had weakened as financial conditions became more restrictive and inflationary pressures increased, partly because of the conflict.

Referring to an International Monetary Fund study covering 170 conflicts dating back to 1946, the Turkish minister said armed conflicts generally lead to economic output losses ranging between 3% and 7%.

He stressed that rebuilding affected economies and achieving a durable recovery would ultimately depend on establishing lasting peace and stability.

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