Turkey has completely suspended imports and exports with Israel as of Thursday, according to two Turkish government officials with knowledge of the situation who spoke with Bloomberg. While Ankara has not issued any formal announcement regarding the trade halt, the move appears to be the latest escalation in deteriorating relations between the two nations over the ongoing conflict in Gaza.
Trade ties at risk
Just last month, Turkey had already implemented restrictions on exports headed to Israel in response to the flare-up of violence in the Palestinian territories. The rupture in economic ties puts billions of dollars in annual bilateral trade at risk. Data from the Turkish Statistical Institute shows that Turkey's total trade with Israel was valued at $6.8 billion in 2023, with Turkish exports accounting for a sizeable 76% share worth over $5.1 billion.
The fallout could deal a significant blow to both economies at a sensitive time as they grapple with high inflation, and currency volatility.
Long-strained ties
Turkey's relations with Israel have been strained for years over Turkish President Recep Tayyip Erdogan's outspoken criticism of Israel's policies toward Palestinians, often attacking Israel with antisemitic tones. However, the two sides had taken steps to normalize ties and re-appointed ambassadors as recently as 2022 after a years-long rift.
The latest crisis erupted in the wake of the Oct. 7 massacre and the Gaza War, with Erdogan accusing Israel of genocide. He has repeatedly expressed support for Hamas and has hosted its leaders.
