Özgür Özel and 91 other MPs founded the New Party (Yeni Parti) after a court ruling reinstated Kemal Kılıçdaroğlu as CHP leader, following a prolonged internal crisis in Turkey's main opposition party. The party was launched on July 24, 2026, the anniversary of the Treaty of Lausanne, with symbolic acts including Friday prayers at Hacı Bayram Mosque and the first board meeting at the Anadolu Club in Ankara. Özel visited Atatürk's mausoleum and the tomb of Hacı Bayram-ı Veli. A quarrel erupted between supporters and those booing Özel outside an Ankara mosque. The New Party becomes the main opposition in parliament with 91 seats, reducing the CHP to 44 seats. Özel vowed to prioritize opposition to President Erdoğan's government, stating the party's priority is opposing Erdoğan and the AK Party, not fighting the CHP. Kılıçdaroğlu responded by focusing on poverty issues. The New Party faces significant challenges including lack of Treasury aid and the need to build a nationwide organization. Özel's presidential candidacy prospects are complicated by the imprisonment of ally Ekrem İmamoğlu and the uncertain status of other potential candidates like Mansur Yavaş. The party has not yet clearly differentiated its ideology from the CHP, adhering to Atatürk's principles. Analysts warn that vote-splitting between the YP and CHP could benefit the AK Party.

Turkey has long depended on Russian natural gas, but is now aggressively diversifying. A 15-year deal with Azerbaijan for 33 bcm of gas from the Absheron field, combined with a massive expansion of US LNG imports, is reshaping its energy mix. Russia's share of Turkey's gas imports has fallen from 60% two decades ago to 37% in early 2025, while US LNG surged to 9.19 bcm in 2025, capturing 16% of the market. Turkey's LNG regasification capacity quintupled from 32 million cubic meters per day in 2016 to 161 million in 2025, enabling annual LNG imports of 58 bcm. Long-term contracts with Cheniere Energy (4 bcm/year from 2026) and ExxonMobil (3.45 bcm/year from 2027) will further boost US supply. Turkey's domestic production is projected to meet 30% of consumption. If trends continue, the combined forces of Azerbaijani pipeline gas and US LNG could unseat Russia as Turkey's top supplier by the 2030s, strengthening Ankara's geopolitical leverage and supporting its ambition to become a regional energy hub, though this is complicated by concerns that a homogenized Turkish blend could obscure Russian gas origin and bypass Western sanctions.

ASEAN foreign ministers approved Türkiye's application to become a dialogue partner, the highest status below full membership, during their annual meeting in Manila on July 21, 2026. Turkish Foreign Minister Hakan Fidan welcomed the decision, noting that trade with ASEAN has grown from $6.5 billion to $16 billion since 2010. In a new development, ASEAN appointed Malaysia as the country coordinator for ASEAN-Türkiye Dialogue Relations, leveraging Malaysia's 2025 ASEAN chairmanship experience and its role as Türkiye's primary gateway to Southeast Asia. Analysts view the upgrade as a milestone in Ankara's 'Asia Anew' initiative, expanding its diplomatic and economic footprint in Southeast Asia amid U.S.-China rivalry. The move is expected to boost trade, defense industry cooperation, and institutional ties with the 11-member bloc. Türkiye's exports to ASEAN increased 17.1% from $2.4 billion in 2021 to $2.8 billion in 2025, while imports rose 50.7% from $8.8 billion to $13.3 billion, with total trade volume reaching $16.1 billion in 2025.

LBA Systems, the joint venture between Leonardo and Baykar, debuted the Astore Levante UCAV at the Farnborough International Airshow. Based on the Bayraktar TB3, the aircraft is equipped with Leonardo mission systems and payloads. The first batch is in production in Italy and expected to be delivered to an Italian end-user by end of 2026. The Italian Navy plans to operate the aircraft from the carrier Cavour, adding a shipborne UCAV capability to its air wing alongside F-35Bs.

Türkiye's hydropower output reached a record monthly high in April 2026, driven by strong rainfall, contributing to record renewable and domestic energy shares. In the first half of 2026, hydropower accounted for 33.8% of electricity generation and displaced an estimated $5 billion in natural gas imports, according to HESIAD chair Elvan Tuğsuz Güven, cushioning the impact of high energy prices amid the Iran war. However, low electricity market prices are straining hydro plant finances. The country has over 13 GW of pumped-storage hydropower potential awaiting investment, but secondary legislation and insufficient support levels under YEKDEM have slowed progress. Güven called for stronger regulatory and financial support, greater use of digitalization and AI, and rehabilitation of existing plants to enhance grid flexibility and energy security.