Iran War Hammers Turkish Steel With 40% Freight Cost Surge
The US-Israel war against Iran has sent freight rates for Turkish steel exporters surging by up to 40%, squeezing margins across the sector. The Steel Exporters Association is pointing to green transition investments as a long-term cost offset.
Since the US and Israeli military operations against Iran began on 28 February, global shipping costs have come under intense pressure. Turkish steel exporters have absorbed freight rate increases of up to 40%, directly threatening the sector's competitiveness and export margins at a time when global demand is already fragile.
The Steel Exporters Association (CIB) warned that rising protectionism in global trade is compounding the pressure. The group argues that the most sustainable path to lower costs runs through green steel production and energy efficiency investment, which would also ease access to the European market as carbon border levies tighten.
Turkey's steel industry is heavily reliant on electric arc furnaces, making it particularly sensitive to energy price volatility. With the Iran conflict continuing to push oil and gas prices higher, cost management will remain a critical challenge for Turkish producers throughout 2026.
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