Ankara, May 17 (QNA) - Turkish Minister of Trade Omer Bolat said that Turkiye has taken a series of proactive measures to ensure the continuity of trade and logistics services amidst escalating tensions in the Strait of Hormuz, pointing to the implementation of alternative transport routes and the round-the-clock monitoring of developments on the ground.

He explained that the ongoing conflict between the United States, Israel, and Iran, coupled with the current situation in the Strait of Hormuz, has become a genuine test of strength, not only for the region's economies but also for the global economy and trade.

In exclusive statements to Qatar News Agency (QNA), he pointed out that despite a relatively fragile lull in the conflict, the significant disruption to shipping traffic in the Strait of Hormuz and the continued restrictions on entry and exit still pose a risk and uncertainty to regional and global economic stability.

He added that the Strait of Hormuz is a vital waterway through which approximately one-fifth of the world’s oil and LNG trade passes.

Therefore, any slowdown or disruption to shipping traffic not only affects regional trade but also directly impacts the security of global energy supplies and prices, which in turn puts pressure on economic growth prospects and international trade. He explained that these repercussions extend to transportation, production, and service costs, including the travel, insurance, and logistics sectors.

He also pointed out that maritime transport is the primary means of international trade, with more than 80 percent of global trade volume transported by sea.

He explained that in the Gulf region, while intra-regional trade relies heavily on land transport, long-distance energy and container trade depends primarily on maritime transport. 

Therefore, any disruption in the Strait of Hormuz restricts the region’s access to global trade routes and negatively impacts the production and export of oil, gas, and petrochemicals.

The Turkish Minister also emphasized that the economies of the region's countries are heavily reliant on energy and petrochemical revenues.

Thus, any decline or disruption in oil and gas exports could place significant pressure on public budgets, economic balances, and financial stability in these countries. Furthermore, potential damage to energy infrastructure and a decline in investor confidence not only threaten short-term economic performance but could also impact medium and long-term investment and trade prospects.

He explained that the degree to which countries in the region are affected by these developments varies depending on their logistical alternatives, alternative export routes, financial capabilities, and foreign exchange reserves that enable them to absorb shocks.

He stressed that the magnitude of the economic and trade repercussions of the war and the current situation in the Strait of Hormuz will remain contingent on the duration of geopolitical tensions and the nature of future developments. Currently, levels of risk and uncertainty remain very high, and a true assessment of the economic impact requires awaiting official data and statistics in the coming period.

Regarding the potential impact of the Strait of Hormuz crisis on Turkiye's trade balance, he emphasized that the Gulf region accounts for approximately 10 percent of Turkiye's merchandise exports and service revenues, making it a crucial economic partner for Ankara.

He noted that in 2025, Turkiye's merchandise exports to the Gulf states reached approximately $31.1 billion, compared to imports of $25.6 billion.

The Gulf states also hold a significant position in Turkish service exports. In 2024, service exports to the region amounted to approximately $6.1 billion, compared to service imports of $2 billion.

He added that the continued geopolitical risks and uncertainty in the region carry potential repercussions for Turkish trade, whether through a decline in external demand in nearby markets or through risks threatening the security of trade and transportation routes.

Nonetheless, Turkiye is among the countries that have successfully diversified their export markets and products, giving them a more resilient export structure capable of withstanding geopolitical and financial shocks and trade restrictions.

In March, as the effects of the war began to emerge, Turkish exports to the Gulf states declined, but overall Turkish exports rose by 4.25 percent compared to the previous month, reflecting the Turkish economy's ability to adapt quickly to changes.

He noted that Turkiye quickly activated alternative trade routes to counter the risks posed by the situation in the Strait of Hormuz to trade, which contributed to a 15.6 percent increase in its exports to the Gulf states in April compared to the same period of the previous year, and a 60.3 percent increase compared to the previous month, reaching $2.4 billion.

Conversely, Turkiye remains a country with a relatively high reliance on energy imports, particularly oil and natural gas.

Therefore, rising energy prices could lead to an increased import bill, putting pressure on the trade balance and current account, in addition to its inflationary repercussions on the Turkish economy.

He noted that his country is monitoring the Strait of Hormuz crisis as a significant risk factor for the regional and global economy. However, he emphasized that Turkiye has taken the necessary measures to mitigate potential risks to foreign trade and inflation resulting from rising energy prices.

To maintain the continuity of trade with countries in the region, the Turkish minister stated that Ankara has activated alternative trade routes to those affected by geopolitical developments.

He affirmed that shipping, logistics, and customs procedures are currently proceeding normally without significant problems. Furthermore, Turkish authorities have established a 24/7 crisis center to intervene rapidly in the event of any potential disruptions related to regional developments.

The Turkish Minister of Trade concluded his statement to QNA by saying that his country is immune to the repercussions of rising energy prices or the risks associated with the Strait of Hormuz, but on the other hand, it is moving proactively to reduce these effects and take the necessary steps in parallel with developments in the regional and international scene. (QNA)