Turkey liquidates nearly all US Treasuries as Iran war bites economy

Turkey liquidated nearly all of its US Treasury holdings in March 2026, according to Bloomberg. The sale, which included approximately $100 billion in bonds, was part of a broader effort to stabilize the Turkish lira amid inflation and sanctions. The move was reported by Middle East Eye as a direct response to the escalating Iran war, which has disrupted regional trade and increased economic uncertainty. The decision to divest from US assets came as Turkey sought to diversify its foreign exchange reserves and reduce dependence on the dollar. However, the sale also raised concerns about the stability of global financial markets, particularly given the scale of the transaction. Both outlets note the timing of the sale coincided with heightened tensions between Iran and Israel, though they do not specify the exact trigger for the decision. Sources agree on the scale and timing of the sale but differ on the immediate consequences. Bloomberg highlights the impact on the Turkish lira, while Middle East Eye emphasizes the broader geopolitical implications of the move.