Turkiye lays out plans for defence pact with Pakistan, Saudi Arabia

Turkiye has announced plans to form a defence pact with Pakistan and Saudi Arabia, following a recent escalation in regional tensions. This move is a response to the growing threat from Iran, which has been firing missiles at Gulf oil exporters. The agreement aims to strengthen the security of these three Sunni Muslim countries and provide a united front against potential threats. This development is significant for markets and trade as it may lead to increased military spending and a shift in regional alliances, potentially affecting global oil prices and geopolitical dynamics.

Why it matters

The defence pact signals increased tensions in the region, which could lead to instability and conflict. This could negatively impact investor sentiment and asset prices in the Gulf.

Market impact

Markets & countries in focus

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Related coverage

• Erdogan wants Turkey-Saudi Arabia-Pakistan defence pact to draw more countries South China Morning Post · 2026-08-12
• Yemen’s Houthis attack Saudi refinery after kingdom signs defence pact South China Morning Post · 2026-08-09
• Iran-aligned Houthis claim they attacked oil refinery in Saudi Arabia The Guardian · 2026-08-09
• Yemen’s Houthis claim responsibility for attack on Saudi oil refinery The Guardian · 2026-08-09
• Gulf shipping traffic down after Houthis say they attacked Saudi tanker The Hindu · 2026-08-06

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