United States prepared to add sanctions on Turkey if pastor not released

US sanctions imposed on Turkey have triggered a crash in the value of the lira

US sanctions imposed on Turkey have triggered a crash in the value of the lira

Brunson, an Evangelical pastor residing in the coastal province of Izmir, is standing trial in Turkey over terrorism charges.

Turkey's lira, meanwhile, dropped nearly 3 percent to almost 6 per dollar again, having recovered ground rapidly in recent days.

U.S. Treasury Secretary Steven Mnuchin told Trump in cabinet on Thursday that more sanctions were ready if Brunson were not freed.

But according to Middle East Eye, Turkish diplomats said they could release Brunson anyway, subject to further concessions from the U.S. which could soothe diplomatic tensions and helping alleviate the diplomatic and economic crisis.

"They have not proven to be a good friend", Trump said of Turkey during the Cabinet meeting.

Mr Trump described him as "our wonderful Christian Pastor, who I must now ask to represent our Country as a great patriot hostage".

In an intensifying cycle of tensions with the United States, Erdogan has called for a boycott of USA electronic goods such as iPhones and Ankara has sharply hiked tariffs on some U.S. products.

Turkey is the sixth-largest steel exporter to the United States.

Mr Albayrak, President Recep Tayyip Erdogan's son-in-law, said the country's banks were healthy and strong and the nation would not be turning to the International Monetary Fund for a bailout.

In U.S. markets, the Dow Jones Industrial Average .DJI rose 396.32 points, or 1.58 percent, to 25,558.73, the S&P 500 .SPX gained 22.32 points, or 0.79 percent, to 2,840.69 and the Nasdaq Composite .IXIC added 32.41 points, or 0.42 percent, to 7,806.52.

"There was considerable risk aversion through the early part of the week with fears of Turkish contagion weighing on risk assets and that seems to have reversed somewhat here", said Karl Schamotta, a strategist at Cambridge Global Payments in Toronto.

Qatar's royal court released a statement saying Al-Thani "issued directives that will see the State of Qatar to provide a host of economic projects, investments, and deposits" worth $15 billion to support the Turkish economy.

Underscoring the ties between the countries, Sheikh Tamim was the first foreign leader to phone President Erdogan during the failed coup in Turkey in 2016.

Erdogan, hinting at a trade for Brunson, said in a speech previous year that if the USA turned over Gülen to the Turkish authorities "we will do what we can in the judiciary to give you this one". Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Other emerging market currencies, such as Brazil's real and Mexico's peso, also rose.

However, analysts are calling for a sharp hike in interest rates - which Erdogan adamantly opposes because it will put a brake on economic growth.

Trump later tweeted that the U.S. "will pay nothing" for the release "but we are cutting back on Turkey!".

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