Trump Lifts Turkey Sanctions, Signals F-35 Sale Amid Regional Tensions

President Donald Trump announced the removal of US sanctions on Turkey and signaled readiness to proceed with F-35 fighter jet sales during a NATO summit in Ankara on July 8, 2026, according to ZeroHedge. Turkish President Recep Tayyip Erdogan responded to Israeli and Greek objections by stating that opposition from Prime Minister Benjamin Netanyahu and Greece's Kyriakos Mitsotakis "has no place in my world." The sanctions were originally imposed in 2020 after Turkey purchased Russian S-400 missile defense systems, which also led to Turkey's removal from the F-35 production program.

Key takeaways
Trump announced sanctions removal on Turkey and signaled F-35 sale readiness during the July 8, 2026 NATO summit in Ankara, according to the source.
The sanctions were imposed in 2020 on a major Turkish defense company after Turkey purchased Russian S-400 systems, which also removed Turkey from the F-35 program.
Israeli Prime Minister Netanyahu objected, citing Erdogan's rhetoric toward Israel and concerns about regional air superiority and power balance.
Erdogan stated that Trump returns calls within 24 hours and that Turkey receives needed responses within that timeframe, according to the source.

Table of Contents
What happened at the NATO summit
Background on US sanctions and F-35 program removal
Israeli and Greek objections
Erdogan's response and diplomatic claims
What to watch next

What happened at the NATO summit

According to ZeroHedge, Trump told reporters just before his meeting with Erdogan during the NATO summit in Turkey that "we're going to be taking the sanctions off." He added that his Secretary of State and Treasury Secretary were working on the issue. Trump also stated, "We are great friends," referring to his relationship with Erdogan. The announcement appeared to surprise members of Congress, who typically have oversight on such matters, according to the source. Secretary of State Marco Rubio appeared surprised in the moment, while Erdogan displayed visible satisfaction, the source reported.

Trump strongly signaled readiness to proceed with F-35 sales to Turkey, according to the source. Erdogan stated at a Wednesday closing news conference for the NATO summit that "hopefully, when the F-35s are delivered to Turkey, the whole world will say America kept its promise." The Turkish leader dismissed objections from Israel and Greece, saying opposition from Netanyahu and Mitsotakis "has no place in my world," according to ZeroHedge. Erdogan later stated that "in reality the United States is not enforcing any sanctions against us" and that "by and large, those measures have already been lifted," the source reported.

Background on US sanctions and F-35 program removal

The United States imposed sanctions on Turkey in 2020 in response to Turkey's purchase of Russian S-400 missile defense systems, according to the source. Washington sanctioned a major Turkish defense company and removed Turkey from the F-35 stealth fighter jet program, where Ankara was also a production partner, ZeroHedge reported. The sanctions and program removal occurred during Trump's prior administration, making the July 2026 announcement a reversal of his own earlier policy, according to the source context.

Israeli and Greek objections

Israeli Prime Minister Benjamin Netanyahu told Fox News on Monday that "Turkey is a great country, but it's governed by a man who calls openly for the annihilation of Israel," referring to Erdogan, according to ZeroHedge. Netanyahu also stated that Erdogan "occupies half of Cyprus, a NATO country. He's threatening Greece, another NATO country, and he talks openly about conquering Jerusalem," the source reported. Netanyahu argued that giving Ankara F-35s or fighter jet engines would "upset the power balance in the Middle East, which is ultimately guaranteed by Israeli air superiority and also by, I think, by America's posture in the Middle East," according to the source.

Netanyahu urgently requested that the White House address Erdogan's rhetoric, according to ZeroHedge. However, the source reported that Israeli pressure did not sway Trump while the US President was in Turkey. Greece's Prime Minister Kyriakos Mitsotakis also objected to the potential F-35 transfer, though the source context does not provide details on the specific nature of Greek objections beyond Erdogan's dismissal of them. For readers following broader general market briefs , geopolitical developments involving NATO members and Middle Eastern powers can influence defense sector activity and regional risk assessments.

Erdogan's response and diplomatic claims

Erdogan stated that his top national security officials "have all witnessed firsthand that these sanctions are not being applied to Türkiye. So, we have no such problem," according to ZeroHedge. He added, "And whenever an issue does arise, Mr. Trump, thankfully, returns our call within 24 hours whenever we reach out to him. Within that same 24-hour period, we receive the response we need," the source reported. These statements suggest Erdogan views the diplomatic relationship as responsive and effective, though the source context does not provide independent verification of sanction enforcement status or call response times.

The Turkish foreign ministry responded to recent Israeli statements by calling them "baseless allegations recently circulated by Israeli officials in a coordinated manner and with calculated timing" that are "part of a disinformation campaign," according to the source. The ministry statement added that "Netanyahu and his partners in crime deliberately distort any criticism directed at them and seek to divert attention through a systematic propaganda effort," ZeroHedge reported. The source context presents these as official Turkish government statements but does not provide independent assessment of the claims made by either side.

What to watch next

Market readers and policy observers may watch for several follow-up developments. Congressional response to Trump's sanctions removal announcement will be important, as Congress typically has oversight on sanctions policy and major defense sales. The source noted that Congress "will want a word on this," though no specific congressional statements were included in the source context. Formal announcements from the Treasury Department and State Department regarding sanctions removal procedures and timelines would provide operational clarity.

Details on any formal F-35 sale proposal, including aircraft quantities, delivery timelines, and congressional notification requirements, would help clarify the scope of the potential transfer. Israeli and Greek government responses beyond the statements already reported may indicate whether diplomatic pressure continues. Regional defense posture adjustments by neighboring countries could follow if the F-35 sale proceeds. The source context does not provide information on market reaction, defense sector stock performance, or analyst assessments of the announcement's financial or strategic implications.

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