Sectors across the Israeli economy are warning of wide-reaching impacts of Turkey’s decision to halt all trade with Israel, and are scrambling to find alternative sources for lost imports.
The Turkish trade ministry announced earlier this week that Ankara is halting all import and export transactions related to Israel until it “allows an uninterrupted and sufficient flow of humanitarian aid to Gaza.” The ban on imports includes iron and steel products, construction materials, minerals, machinery, cars, energy products, rubber, plastics, health and agricultural products.
The construction industry is bracing for the loss of Turkish iron and steel products and building materials, as Turkey supplied 29 percent of Israel’s total cement imports last year.
Last month, Israeli businessmen warned that the restrictions could drive an increase in property and rent prices. Meanwhile, Israel’s largest oil refinery, Bezan, said the ban could impact crude oil imports.
Forty percent of Israel’s annual oil consumption is piped to the Turkish oil hub port of Ceyhan and then shipped to Israel.
Moreover, representatives of the electrical products industry are warning that the ban could lead to a 35 percent hike in prices, as the majority of domestic electrical goods in Israel are manufactured in Turkey.
The new restrictions could force importers to import across the Red Sea, where attacks by Yemen’s Houthi group have driven a spike in shipping costs.
