‘Sacred Duty’: Inflation Eats Into Turkey’s Muslim Feast

Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
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‘Sacred Duty’: Inflation Eats Into Turkey’s Muslim Feast

Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP

With inflation in Turkey galloping, the sheep Gul Er buys every year for the Muslim festival of sacrifice in Istanbul looks agonizingly out of reach.

Prices have doubled or even tripled since President Recep Tayyip Erdogan began an unorthodox economic experiment last year that has seen Turks' living standards suffer.

The young mother hopes to bargain down the price on one of the skimpiest-looking animals at a livestock fair held under white tents in a conservative corner of the city before the Kurban Bayrami (Eid al-Adha in Arabic) holiday.

"It is a sacred duty," she said of buying a sheep, which along with oxen and goats are sacrificed in the name of Allah, with the meat traditionally shared with the poor, friends and neighbors.

"But this year, prices are unaffordable," Er said, the stench of thousands of animals mixing with the sounds of haggling in the heavy summer air, ahead of Saturday's first full day of festivities.

According to AFP, annual inflation in Turkey has officially reached 78.6 percent, although economists and many ordinary Turks doubt government data.

Even if the official figures are to be believed, that is higher than in any other emerging market and nearly 10 times the record levels rocking the European Union, where the cost of living is unleashing political crises.

An independent survey prepared by the ENAG group -- and believed by most Turks -- puts the annual inflation rate at 175 percent.

Besides clouding Erdogan's chances in next year's election, these figures spell trouble for the merchants at the Istanbul animal fair.

Turkey's agricultural chambers union chief Semsi Bayraktar expects sales to fall by a quarter this year.

Galip Toklu, a breeder who came to the 40,000-square-metre (10-acre) fair from the Black Sea city of Samsun, listed the ways inflation snowballs into seemingly endless problems.

The cost of animal feed has quadrupled while the amount he pays to drive his livestock to Istanbul has tripled since the last Kurban Bayrami, forcing Toklu to double the price of his meat.

"Last year, I sold 500 kilos (1,100 pounds) of beef for 20,000 liras. This year, I set my prices at 45,000 liras," he said.

Yet few can now afford Toklu's beef, while selling it any cheaper could put him out of business.

"Customers are unavoidably upset," he said, his face sullen under a wide-brimmed hat.

While this year's animal fair looks huge, its 160 tents are a fraction of the 500 erected in past years.

As the fair winds down, breeder Sinas Ates looks despondent, having failed to make a single sale in two days. Livestock farming in Turkey is "finished", he grumbled.

Just like the sacrifice of sheep, Erdogan's economic experiment -- dubbed "Erdonomics" by skeptical global markets -- is also linked to his faith.

Erdogan cites Islamic proscriptions on usury to justify his refusal to raise interest rates to fight inflation.

High interest rates cause prices to rise, according to Erdogan's logic, which contradicts accepted economic orthodoxy.

So Erdogan has pushed the central bank to set interest rates even lower. Analysts at Capital Economics in London see the possibility of a crash of the lira as "a major risk".

At the market, Salih Yeter has responded to the crisis by coming out to look for the perfect sheep with seven friends, who will all contribute to the purchase.

"People usually can't afford to eat meat," the 57-year-old said, adding that giving away meat to the poor is particularly important in times of trouble.

The price of food has soared by 93 percent in the past year, according to official data, with meat prices pushing even higher.

This is especially painful for Er, whose daughter has a metabolic condition that restricts her to a meat diet.

"I can't even respect my daughter's diet," the mother whispered.

But respect for the holy holiday's traditions is binding, said Selahattin Kose, a "hajji" (one who has made the pilgrimage to Makkah), from the eastern city of Erzurum.

"Prices have doubled, but we have to deal with it," Kose said. "It's Allah's orders."



Gold Advances on US–Iran Tensions as Markets Weigh Fed Policy Path

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
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Gold Advances on US–Iran Tensions as Markets Weigh Fed Policy Path

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo

Gold prices extended gains on Thursday after rising more than 2% in the previous session, as lingering tensions between the United States and Iran prompted a flight to safety, while investors evaluated the Federal Reserve's monetary policy path.

Spot gold rose 0.2% to $4,989.09 per ounce by 1227 GMT. US gold futures for April delivery held steady at $5,008.60.

"Geopolitical concerns are front and centre with reports that, if the US were to take military action against Iran, it could go on for several weeks," said Jamie Dutta, market analyst at Nemo.money, Reuters reported.

Some progress was made during Iran talks this week in Geneva but distance remained on some issues, the White House said on Wednesday.

FED LARGELY UNITED

Top US national security advisers met in the White House Situation Room on Wednesday to discuss Iran and were told all US military forces deployed to the region should be in place by mid-March.

Meanwhile, the Fed's January minutes showed it largely united on holding interest rates steady, but divided over what comes next, with "several" open to rate hikes if inflation remains elevated, while others were inclined to support further cuts if inflation recedes.

The weekly jobless claims data, due later in the day, and Friday's Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, will provide further clues on the central bank's policy trajectory.

Markets currently expect this year's first interest rate cut to be in June, according to CME's FedWatch Tool.

Non-yielding bullion tends to do well in low-interest-rate environments.

Spot silver rose 0.9% to $77.87 per ounce after climbing more than 5% on Wednesday.

Silver is "supported by tight supply and low COMEX stock levels ahead of the delivery period of the March contract. However, given the extent of the historic correction earlier this month, silver is not back on safer ground until it trades back above $86," said Ole Hansen, head of commodity strategy at Saxo Bank.

Spot platinum fell 0.6% to $2,059.55 per ounce, while palladium lost 1.7% to $1,686.47.


Oil Prices Extend Gains on Concerns of Potential US-Iran Conflict

FILE PHOTO: The Phillips 66 Lake Charles Refinery is pictured in West Lake, Louisiana, US, June 12, 2018. REUTERS/Jonathan Bachman/File Photo
FILE PHOTO: The Phillips 66 Lake Charles Refinery is pictured in West Lake, Louisiana, US, June 12, 2018. REUTERS/Jonathan Bachman/File Photo
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Oil Prices Extend Gains on Concerns of Potential US-Iran Conflict

FILE PHOTO: The Phillips 66 Lake Charles Refinery is pictured in West Lake, Louisiana, US, June 12, 2018. REUTERS/Jonathan Bachman/File Photo
FILE PHOTO: The Phillips 66 Lake Charles Refinery is pictured in West Lake, Louisiana, US, June 12, 2018. REUTERS/Jonathan Bachman/File Photo

Oil prices rose on Thursday as the US and Iran attempted to ease a standoff in talks over Tehran's nuclear program while both sides heightened military activity in the key oil-producing region.

Brent futures climbed 23 cents, or 0.3% to $70.58 a barrel by 0735 GMT, while US West Texas Intermediate (WTI) crude gained 25 cents, or 0.4%, to trade at $65.44 a barrel.

Both benchmarks settled more than 4% higher on Wednesday, posting their highest settlements since January 30, as traders priced in the risk of supply disruptions in the event of ‌a conflict.

"Oil prices are ‌rallying as the market becomes increasingly concerned over the potential ‌for ⁠imminent US action ⁠against Iran," said ING analysts in a Thursday note.

Iranian state media reported the country had shut down the Strait of Hormuz for a few hours on Tuesday, without making clear whether the waterway had fully reopened. About 20% ⁠of the world's oil supply passes through the waterway.

"Tensions between Washington ‌and Tehran remain high, but the prevailing view ‌is that full-scale armed conflict is unlikely, prompting a wait-and-see approach," said Hiroyuki Kikukawa, chief strategist of ‌Nissan Securities Investment, a unit of Nissan Securities.

"US President Donald Trump does not ‌want a sharp rise in crude prices, and even if military action occurs, it would likely be limited to short-term air strikes," Kikukawa added.

A degree of progress was made during Iran talks in Geneva this week but distance remained on some issues, the White House said on Wednesday, ‌adding that it expected Tehran to come back with more details in a couple of weeks.

Iran issued a notice to ⁠airmen (NOTAM) that ⁠it plans rocket launches in areas across its south on Thursday from 0330 GMT to 1330 GMT, according to the US Federal Aviation Administration website.

At the same time, the US has deployed warships near Iran, with US Vice President JD Vance saying Washington was weighing whether to continue diplomatic engagement with Tehran or pursue "another option".

Meanwhile, two days of peace talks in Geneva between Ukraine and Russia ended on Wednesday without a breakthrough, with Ukrainian President Volodymyr Zelenskiy accusing Moscow of stalling US-mediated efforts to end the four-year-old war.

US crude and gasoline and distillate inventories fell last week, market sources said, citing American Petroleum Institute figures on Wednesday, contrary to expectations in a Reuters poll that crude stocks would rise by 2.1 million barrels in the week to February 13.

Official US oil inventory reports from the Energy Information Administration are due on Thursday.


Madinah Sees Tourism Surge Ahead of Ramadan, Spending Tops $13.9 Billion

A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 
A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 
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Madinah Sees Tourism Surge Ahead of Ramadan, Spending Tops $13.9 Billion

A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 
A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 

Saudi Arabia’s Minister of Tourism, Ahmed Al-Khateeb, has toured hospitality facilities and visitor services in Madinah as part of the “Spirit of Ramadan” inspection tour, which also included Jeddah and Makkah.

New data show visitor numbers exceeded 21 million over the past year, a 12 percent increase from 2024, while total tourism spending reached SAR 52 billion (about $13.9 billion), up 22 percent.

The visit focused on assessing the sector’s readiness for the Ramadan season, evaluating service quality, and supporting ongoing and upcoming tourism projects.

Madinah posted strong tourism performance in 2025, driven by higher visitor inflows and expanded hospitality capacity, reinforcing its position as a leading religious destination within Saudi Arabia’s tourism landscape.

Demand growth has been matched by a sharp rise in supply. Licensed hospitality facilities increased to 610, up 35 percent, while the number of licensed rooms surpassed 76,000, a 24 percent gain, strengthening the city’s ability to accommodate during peak seasons such as Ramadan and Hajj.

Travel and tourism offices also grew to more than 240, reflecting a 29 percent expansion in supporting services.

Al-Khateeb said the entry of international hospitality brands and new projects over the past five years underscores both sectoral growth and rising investor confidence in the Kingdom’s tourism ecosystem.

“The landscape today is different. The sector is growing steadily, supported by a system that empowers investors and facilitates their journey, with a promising future ahead,” he said.

To expand hotel capacity, the minister inaugurated the Radisson Hotel Madinah, a project worth more than SAR 39 million (around $10 million) and financed by the Tourism Development Fund.

The 2025 performance signals a shift from traditional seasonal growth toward more sustainable expansion built on diversified offerings, improved service quality, and a stronger contribution to the local economy.