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Turkish Stocks Plunge 5.3% as Iran Crisis Sparks Market Panic

Bloomberg Markets •
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Turkish stocks plummeted Monday as conflict in the Middle East roiled markets. The Borsa Istanbul 100 Index fell 5.3% by 9:55 a.m. Istanbul time, marking its steepest decline in over a year. Turkish authorities responded with emergency measures to shield investors from escalating volatility. The Capital Markets Board imposed a temporary short-selling ban through March 6 and slashed the minimum equity capital protection requirement to 20% from 35%.

These actions aim to curb speculation and ease margin pressures on leveraged positions. Borsa Istanbul also tightened trading rules by lowering its order-to-trade ratio to 3:1 from 5:1, targeting high-frequency trading strategies. The market's sharp drop underscores Turkey's vulnerability to geopolitical shocks, with implications for regional investors and international capital flows.