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Like most disputes between nations, the recent impasse between Turkey on the one hand, and Cyprus and Greece (which means the EU) on the other, is both simple and complicated.
The simple explanation is natural resources, like most conflicts.
Turkey is trying to extract oil and gas from disputed maritime territory. But why is it disputed, what does that mean for a potential resolution, and the potential impact on the markets? That’s quite a bit more complicated.
The Eternal Rhyming of History
Without getting into a history lesson, Turkey and Cyprus have been technically at war since the 1970s.
Turkey has occupied the northern third of the island since 1974. Turkey also claims the corresponding maritime rights around its third, which Cyprus refutes.
The current issue started in the spring of 2019. Turkey began exploring for oil in the seas that both Cyprus and Turkey claim.
Cyprus is a member of the EU, which brought the block into conflict, supporting their member.
Turkey refused ...
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