Former Vice President Mike Pence urged President Donald Trump to reconsider plans to ease sanctions on Turkey and restore its access to F-35 fighter jets, warning the move could create major security risks for the U.S. and its allies. Pence argued that lifting restrictions imposed after Turkey acquired the Russian S-400 missile system in 2017 would undermine the security of the United States, Israel, and NATO.

In a post on X, Pence shared a Fox News report regarding Trump's plans and stated that clearing the way to provide Turkey F-35 fighter jets would be a strategic mistake. "Mr. President, Please Don’t," Pence added in his public appeal against the policy shift.

Trump Plans to Lift Sanctions

President Trump announced his intention to lift sanctions on Turkey’s defense sector during a meeting with Turkish President Recep Tayyip Erdoğan at a NATO summit. "I can tell you we’re going to be taking the sanctions off," Trump said. "I don’t want him to waste his time answering that question. It’s time. We don’t sanction friends."

Trump indicated he was open to allowing Turkey to purchase F-35 jets despite concerns over Ankara’s ownership of the Russian-made S-400 air defense system. "Many people, including the people sitting right here think why wouldn’t we do that?" Trump said, adding that Turkey has been "much more loyal than other countries."

NATO Defense Investments

The discussions occurred as NATO allies announced tens of billions of dollars in defense deals in Turkey, including plans to invest more than $40 billion in anti-drone capabilities over five years. These announcements included purchases involving major defense companies such as Northrop Grumman, Saab, and Lockheed Martin.

Israeli Prime Minister Benjamin Netanyahu reportedly urged Trump not to approve the restoration of Turkey’s access to the F-35 program, citing security concerns. The moves follow U.S. pressure for higher European defense spending amid concerns over Russia, China, North Korea, and Iran.

Ark Invest CEO Cathie Wood warned that a global financial crisis could be brewing, noting that aggressive efforts by emerging-market countries to defend their currencies resemble conditions that preceded the Asian financial crisis of the late 1990s. Wood stated she was closely watching countries such as Turkey, where authorities have aggressively defended the local currency. She added that similar interventions in emerging markets during the 1980s and before the 1997 Asian financial crisis were signs that broader financial stress was building.

The 1997 Asian financial crisis began with pressure on regional currencies before spreading across financial markets and triggering recessions in several economies. Wood indicated that countries under pressure may be forced to sell U.S. Treasuries or gold reserves to support their currencies. Referring to Turkey, she said authorities could be forced to sell gold, while adding that Russia has also recently been selling gold to finance its war effort.

Historical Context and Market Stress

Wood drew parallels between current market conditions and historical financial crises. She noted that the pattern of aggressive currency defense preceded the Asian crisis of the 1990s. The following table summarizes the key comparisons Wood made regarding the signals:

Reserve Implications and Investor Focus

Countries often use foreign exchange reserves, including U.S. Treasuries and gold, to stabilize their currencies during periods of market stress, although sustained intervention can reduce reserve buffers. Turkey has repeatedly intervened in currency markets in recent years as policymakers sought to stabilize the lira amid persistent inflation and capital outflows. Wood’s comments come as investors continue to monitor global central bank policies, geopolitical tensions and financial conditions across emerging markets for signs of broader economic stress.