The tension in the financial market of Turkey increased after the US authorities imposed sanctions against Turkish Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gül, Reuters reported.

The Turkish lira weakened towards the US dollar, breaching 5 per dollar level. Together with the depreciation of the national currency, the Turkish stock market is losing its positions in dollar terms. The cost of insurance against Turkish default in terms of 5-year credit default swaps CDS in recent days went through the roof.

Investors fear that the Turkish response to another US actions will set in motion a conflict between Ankara and Washington to unprecedented scale.

The current tough US policy and the tendency of Emerging Markets to become less dependent on the dollar economic zone will lead to serious changes in the geopolitical landscape in the future.