The world is going through a period of heightened uncertainty and sharp swings in energy prices, but past experience suggests such shocks are unlikely to be permanent, Treasury and Finance Minister Mehmet Şimşek said on Monday.
Şimşek's remarks came as oil prices skyrocketed to levels not seen since mid-2022, as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding U.S.-Israeli war with Iran.
Crude oil futures soared almost 30% on Monday to nearly $120 a barrel, one of its biggest one-day jumps on record, threatening to raise costs of products from gasoline to jet fuel.
Brent crude futures were last up $12.77, or 14%, at $105.46 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were up $12.66, or 14%, at $103.56.
Brent has surged as much as 66% and WTI 77% since their last close before the U.S. and Israel started attacks on Feb. 28.
Monday's prices compare with all-time highs of around $147 a barrel for the contracts in 2008, according to LSEG data going back to the 1980s.
The key Strait of Hormuz waterway, through which roughly one-fifth of the world's oil and liquefied natural gas typically passes, is virtually shut.
That could leave consumers and businesses worldwide facing weeks or months of higher fuel prices even if the conflict ends quickly, as suppliers grapple with damaged facilities, disrupted logistics and elevated risks to shipping.
The current volatility is leading to more worries that higher energy costs will fuel inflation and make it harder for central banks to ease policy.
Authorities of Türkiye are closely monitoring developments and stand ready to take necessary measures, Şimşek said on Monday.
"We are going through a period marked by high global uncertainties and sharp fluctuations in energy prices," he wrote in a post on social media platform X.
"Past experience shows that such shocks are not permanent," he added.
Şimşek said pricing in the forward oil markets also suggested that the current movement may be "temporary."
"Economies with strong fundamentals have the capacity to quickly rebalance and recover," he said.
"As economic management, we are closely monitoring developments and taking the necessary measures. It is important for our citizens, investors, and businesses to assess this process rationally," he suggested.
With hostilities continuing in the Middle East and tankers unable to cross the Strait of Hormuz amid the threat of Iranian drone attacks, investors were bracing for a long stretch of higher energy costs.
Officials on Monday said Group of Seven (G-7) nations were to convene to discuss potentially dipping into their emergency oil stockpiles in response to soaring prices.
Türkiye, which for years has been working on curbing oil and gas imports by ramping up domestic production, still heavily relies on imports to meet its energy demand needs.
In response to the conflict, Turkish authorities reintroduced the so-called sliding "scale system" to mitigate the impact of the perceived temporary increase in oil prices.
The system adjusts the special consumption tax (ÖTV) on fuel products in line with changes in oil prices to prevent excessive price increases.
Shortly after the start of the conflict, Ankara also convened the Financial Stability Committee, which said it would take all necessary steps to ensure market functioning and contain the fallout.
Meanwhile, the Capital Markets Board (SPK) on Sunday extended the ban on short-selling until the end of the March 13 session at the Istanbul stock exchange.
All eyes will now turn to the Central Bank of the Republic of Türkiye (CBRT), which will gather for its Monetary Policy Committee (MPC) meeting on Thursday and is widely expected to pause its easing cycle.
The central bank has slashed interest rates by 900 basis points since mid-2025 to 37% as annual inflation slowed from over 40% at the beginning of last year to just over 30% in January.
But a rise to 31.5% last month signaled a slowdown in disinflation, and the escalating U.S.-Israeli war with Iran threatens to drive prices higher.
In response, the central bank already took a series of steps last week, including pushing the market overnight rate to about 40%.
