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Disruption of US-Iran ceasefire could trigger global recession — Turkish finance minister

The global economy is currently experiencing the strongest shock since World War II, Mehmet Simsek noted

ISTANBUL, April 9. /TASS/. A possible collapse of the two-week ceasefire between the United States and Iran poses risks of a global recession, Turkish Finance Minister Mehmet Simsek said.

"The global economy is currently experiencing the strongest shock since World War II. The decision by the United States and Iran on a temporary ceasefire is welcome, but even if it holds in its current form, restoring supply chains to pre-war levels will take months even under the most optimistic scenarios. If this shock persists and the ceasefire is broken, prices for oil, natural gas and commodities will rise again. This, in turn, will lead to slower economic growth, higher inflation and the risk of a global recession," the minister stated on Haberturk TV.

"I hope the ceasefire will hold and a final peace agreement will be reached. In that case, expectations for the global economy will improve," Simsek went on to say.

US President Donald Trump announced on April 7 a two-week mutual ceasefire with Iran. According to him, the sides have resolved most contentious issues, and Washington is considering Tehran’s 10-point proposals as a working basis for further talks. The US leader said the decision was made amid Iran’s readiness to reopen the Strait of Hormuz. Tehran, in turn, agreed to halt "retaliatory attacks" provided no strikes are carried out against the Islamic republic. Pakistan’s Prime Minister Shahbaz Sharif, acting as a mediator between the sides, invited them to talks on April 10. According to Iranian state television, the talks are expected to be held directly.

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