Turkey's economy grew 2.5 percent year-on-year in the first quarter of 2026, down from 3.4 percent in the previous quarter, as the US-Israel war on Iran drove up energy prices and revived inflation, official TurkStat data showed. Industry contracted 0.8 percent and exports fell 12.7 percent, while agriculture and services supported growth; Finance Minister Mehmet Simsek noted 23 consecutive quarters of expansion and national income above $1.6 trillion. The central bank has raised its end-2026 inflation target to 24 percent from 16 percent, with April prices up 32.4 percent year-on-year.

President Recep Tayyip Erdoğan on Monday said the government has no involvement in the ongoing political and legal disputes within the main opposition Republican People's Party (CHP). Speaking after a Cabinet meeting in Ankara, Erdoğan stated the ruling alliance remains focused on serving the nation and building a brighter future for Türkiye. A court ruling last month annulled the CHP's 2023 congress results and reinstated former Chairman Kemal Kılıçdaroğlu as chair, deepening tensions within the party.

Turkish National Intelligence Organization (MIT) chief Ibrahim Kalın met with senior Hamas officials in Ankara on Monday to discuss the next phase of the Gaza ceasefire agreement and efforts to secure a lasting truce, security sources said. Hamas representatives said they had complied with the ceasefire terms and briefed Kalın on what they described as Israeli violations. A separate Hamas delegation is due to meet mediators in Egypt on Wednesday to advance the fragile truce.

Turkey and Azerbaijan have launched natural gas exports to Syria, with initial flows of 1.2 billion cubic meters annually, President Recep Tayyip Erdoğan said Monday. The gas, transported from the Shah Deniz field via Turkey, is being used to restart power plants and meet basic energy needs in conflict-affected areas. Erdoğan also announced plans for a new electricity transmission corridor linking Turkey, Azerbaijan, Georgia and Bulgaria, which he described as the "electricity version of TANAP."

Türkiye condemned a raid by Israeli extremist groups on the Al-Aqsa Mosque under Israeli security protection, including provocative actions such as raising the Israeli flag and singing the national anthem. The Foreign Ministry warned that such actions violate international law and risk deepening regional instability, calling for increased international pressure on Israel. On 1 June 2026, Türkiye reiterated its condemnation of the raid, with the Foreign Ministry again warning that such actions violate international law and risk deepening regional instability, and calling for increased international pressure on Israel.

Turkey's Disaster and Emergency Management Authority (AFAD) had been conducting flood response operations since May 2026. Between May 21-31, 2026, AFAD deployed 13,342 personnel and 5,656 vehicles and heavy machinery to respond to 110 landslide and rockfall incidents across provinces including Tokat, Trabzon, Osmaniye, Giresun, Hatay, Gümüşhane, Niğde, Erzurum, and Afyonkarahisar, damaging 67 homes and one barn. Floods and overflows also occurred in Hatay, Tokat, Amasya, Nevşehir, Ordu, Çorum, Konya, Ankara, Eskişehir, Karabük, Adıyaman, Kırşehir, Bursa, Erzurum, Artvin, Çankırı, Kütahya, Bolu, Aksaray, Edirne, Osmaniye, Giresun, Rize, and Bilecik. Response involved police, gendarmerie, health services, fire departments, highways authorities, provincial special administrations, DSİ, and municipalities. Recovery efforts including cleaning of affected homes and workplaces are ongoing with AFAD Volunteers.

Turkey's manufacturing sector showed signs of stabilization in May 2026 after a sharp contraction in April driven by the Iran war. The Istanbul Chamber of Industry PMI rose to 49.8 from 45.7, the highest since March 2024. Output returned to growth and export orders increased for the first time in 21 months, though total new business remained subdued due to uncertainty, higher prices, and the ongoing conflict. Input costs continued to rise sharply and supply-chain delays persisted, but firms increased purchasing activity for the first time in over two years to build safety stocks. Employment fell at the slowest pace in 2026.

Turkey's state energy company BOTAŞ, alongside SOCAR, TotalEnergies, and ADNOC, signed a 15-year agreement to supply 33 billion cubic meters of natural gas from Azerbaijan's Absheron field starting in 2029. The deal supports Turkey's energy hub ambitions and regional energy security, with a final investment decision for the second phase expected this year.