President Recep Tayyip Erdoğan held talks with US President Donald Trump at the Presidential Complex in Ankara on the occasion of the 36th NATO Summit. After the meeting, Erdoğan told reporters that the F-35 fighter jet issue was not new and that they had secured a promise for five aircraft from the US, stating, "Mr. Trump has also given his word to us on this. I know that during the Leaders' Summit we will be positively testing the promise we previously received from them on the F-35."
US President Trump also highlighted Turkey's military strength, stating, "I can say we may lift the sanctions."
Middle East conflict roils oil markets
As these diplomatic contacts proceeded, renewed sounds of explosions in the Middle East heightened the perception of geopolitical risk in global markets. US Central Command (CENTCOM) announced via social media that it had struck over 80 targets belonging to Iran and that its forces remained on standby.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the US strikes violated the memorandum of understanding, reacting by saying, "No result can be achieved through bullying and pressure." The escalating tension in the region caused the price of Brent crude to rise 5.2% to $75.8 a barrel, marking its fastest daily jump since April 29.
Fed minutes and inflation concerns shape markets
The sharp rise in oil prices fueled concerns about inflationary pressures, shifting focus to the monetary policy of the US Federal Reserve (Fed). Following the attacks, the probability of a rate hike in September rose to 77% in money markets. Investors await clues from today's release of the Federal Open Market Committee (FOMC) meeting minutes.
Meanwhile, reports that Chinese startup DeepSeek had developed its own AI chip led to declines in shares of US semiconductor companies. Marvell Technology dropped 7.5%, Lam Research 6.9%, and AMD and Applied Materials each lost 6.5%.
The yield on US 10-year Treasuries rose about 10 basis points to 4.56%, while the dollar index rose 0.3% to 101.2. The stronger dollar and rising rates pushed gold down 1.4% yesterday to $4,106 an ounce.
European and Asian stocks mixed, BIST 100 up
European stock markets saw a general decline yesterday except for the UK. Industrial production in Germany rose 0.9% month-on-month in May. The FTSE 100 edged up 0.1%, while the CAC 40 fell 0.51% and the DAX 40 fell 1.37%.
Asian markets saw a mixed performance. DeepSeek's move supported Chinese stocks, while Japan's Nikkei 225 index fell 0.66%. Turkey's BIST 100 index closed up 0.50% at 14,497.37 points. Analysts identified 14,600 and 14,700 as resistance levels, and 14,400 and 14,300 as support levels.
