Turkey has warned Greece to talk or face the consequences as the two clash over disputed waters in the Eastern Mediterranean, where rich gas and oil reserves are expected to be found.
“They’re either going to understand the language of politics and diplomacy, or in the field with painful experiences,” Turkish President Recep Tayyip Erdogan said on Saturday.
Tension between the Nato allies has risen as the neighbours, with many long-simmering disputes, send naval and air forces.
“They are going to understand that Turkey has the political, economic and military power to tear up the immoral maps and documents imposed,” Mr Erdogan said.
Speaking at the opening ceremony of a hospital in Istanbul, he said Turkey was “ready for every eventuality and result”.
The Cumhuriyet newspaper reported that 40 tanks were being moved to north-west Turkey and carried photographs of armoured vehicles loaded on lorries.
Tension between Greece, an EU member, and Turkey escalated close to breaking point in recent weeks over access to Economic Exclusive Zones around Greek islands in the Eastern Mediterranean.
Greece and the EU have said Turkey’s exploration operations in the area are illegal.
Turkey has said it should have access to waters on the islands because they lie on its continental shelf.
The clashes are also happening in waters near Cyprus, another EU member.
Nato arranged for Greek and Turkish military officers to begin talks to try to reduce the risk of armed conflict or accidents.
Simulated dogfights between Greek and Turkish fighter pilots have occurred over the Aegean Sea and the eastern Mediterranean, and two ships collided in August.
France, Italy and the UAE have all sent forces to join war games with either Greece or Cyprus in recent weeks.
Egypt has signed an energy exploration deal with Athens for the Mediterranean.
The EU has also threatened possible sanctions against Turkey over what it says are illegal actions.
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Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
Race card
5pm: Maiden (PA) Dh80,000 (Turf) 1,600m
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m
6pm: Arabian Triple Crown Round-1 Listed (PA) Dh230,000 (T) 1,600m
6.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m
7pm: Maiden (PA) Dh80,000 (T) 1,200m
7.30pm: Handicap (TB) Dh100,000 (T) 2,400m
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
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