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High Impact

TURKISH FOREIGN MINISTER FIDAN: BOTH ERDOGAN AND TRUMP STRONGLY COMMITTED TO LIFTING CAATSA SANCTIONS; LEADERS PUBLICLY EXPRESSED POSITIONS LAST SEPTEMBER AND MINISTERS WERE INSTRUCTED TO RESOLVE THE MATTER

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🏷Markets
📰via FS
✍️Edited by Luís Barata

Turkish Foreign Minister Hakan Fidan confirmed that President Erdogan and President-elect Trump are actively coordinating to lift CAATSA sanctions, citing direct instructions to ministerial teams to resolve the long-standing diplomatic impasse. The market transmission mechanism operates through a significant reduction in geopolitical risk premiums and the potential restoration of normalized defense procurement channels, which would alleviate long-term capital flow constraints. Turkish sovereign debt and the lira are the primary assets exposed to this development, as the removal of these sanctions would likely improve international investor sentiment and lower the country’s credit default swap spreads. Traders are now shifting focus toward the upcoming transition of the U.S. administration and any formal legislative notifications to Congress, which serve as the definitive procedural hurdle for the official rescission of these punitive measures.

Source: Originally reported by FS at July 02, 2026. Summary and market context by Trading News Terminal editorial.

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