Turkey promises U.S. tit-for-tat response

The threat comes as Turkey sought to reassure investors rattled by the sanctions-fueled crash of the Turkish lira, insisting the country would emerge stronger.

With Turkey's economy already in a downward spiral, the president's treasury secretary, Steve Mnuchin, announced more financial pressure is on the way if Turkey doesn't release Pastor Brunson.

The lira has staged a small recovery but that is threatened by a fresh tweet from US President Donald Trump.

The Turkish diplomatic source, who is well-informed on the talks between the two countries, said that in order to stem the economic crisis, the government knows it will have to solve the diplomatic crisis with the United States, but has struggled to negotiate a workable deal.

The currency lost almost 40 percent against the dollar this year, driven by worries over President Erdogan's growing influence on the economy and his repeated calls for lower interest rates despite high inflation.

Last week, President Trump authorized doubling tariffs on Turkish steel and aluminum which has further strained economic tensions with Turkey.

Last month, at Brunson's third court hearing in almost two years, U.S. officials thought they had brokered a deal to free him by pressuring Israel to release a Turkish citizen imprisoned there.

Whatever action the United States does take, economists said it looked likely to cause more pain for Turkish assets in the immediate future.

Albayrak, a 40-year-old former company executive with a doctorate in finance, said Turkey would not hesitate to provide support to the banking sector.

"He said all the right things, but it's one thing saying them and another thing doing them", said Sailesh Lad at AXA Investment Managers.

Doha has pledged to offer loans worth 15 billion US dollars to help Ankara ride out its lira crisis. Brunson, who Turkish officials say had links to a failed 2016 coup, is being held under house arrest. "They said they came to Qatar's support during Doha's row with its Arab neighbors, and now it was Qatar's turn to pay back the favor".

In another high-profile case, a Turkish court ruled on August 15 to release from jail Taner Kilic, the local chair of Amnesty International, a researcher from the rights group said.

World stocks rose on Friday as news of plans for U.S.

However, Turks appeared not to be heeding his appeal.

According to the Hurriyet Daily, a significant number of importers began to withdraw their short and long-term orders after Turkish President Recep Tayyip Erdogan's appeal to boycott American electronic products on Tuesday.