Turkey ignored new sanctions from the United States to press on with its assault on northern Syria on Tuesday, while the Russia-backed Syrian army entered one of the most hotly contested cities, filling a void created by Donald Trump's abrupt retreat.
A week after reversing US policy and moving troops out of the way to allow Turkey to attack Washington's allies in northern Syria, Trump announced a package of sanctions to punish Turkey.
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But financial markets shrugged off the announcement. The Turkish lira actually went up, with traders noting Trump had spared Turkish banks from punishment.
Trump's unexpected decision to withhold protection from Syria's Kurds after a phone call with Turkish President Recep Tayyip Erdoğan a week ago swiftly upended five years of US policy in the Middle East, giving a free hand to Washington's adversaries in the world's deadliest ongoing war.
The United States announced on Sunday it was withdrawing its entire force of 1,000 troops. Its former Kurdish allies immediately forged a new alliance with the Russia-backed Syrian government of President Bashar Assad, inviting the army into towns across the breadth of Kurdish-held territory.
One of the most important flashpoints is the city of Manbij, west of the Euphrates river, which Turkey has vowed to capture. The area had been patrolled jointly by US and Turkish forces under a deal aiming to persuade Turkey not to invade.
The Russian-backed Syrian forces appear to have moved swiftly to fill the void left by departing US troops. State television broadcast footage of what it said was government troops entering the city on Tuesday. A resident inside the city told Reuters the Syrian troops were on its outskirts.
Turkey-backed Syrian fighters said they would continue their advance towards Manbij, and said the troops that had entered were mostly Kurdish fighters now allied to the government.
Trump has defended his reversal of US policy as part of a plan to withdraw the United States from "endless" wars in the Middle East.
Turkey says it aims to defeat the Kurdish YPG militia, which it sees as terrorists for its links to separatists in Turkey, and to create a "safe zone" where millions of Syrian refugees can be resettled.
The United Nations says 160,000 people have fled their homes as Turkish forces advance. The Kurdish administration puts the number of displaced at 270,000.
Erdoğan, who has pledged to continue military operations come what may, said Turkey was giving the world a "second chance" to bring peace to the region.
"The international community missed its opportunity to prevent the Syrian crisis from pulling an entire region into a maelstrom of instability," he wrote in The Wall Street Journal. "The European Union – and the world – should support what Turkey is trying to do."
The Syrian army deployments into Kurdish-held territory are a victory for President Bashar Assad and his most powerful ally, Russia, giving them a foothold in the biggest remaining swath of the country that had been beyond their grasp.
