Turkey tells U.S. to reverse its 'wrong decision' over sanctions

US Pastor Andrew Brunson is seen inside a car escorted by Turkish plain-clothes police officers as he arrives at his house

Turkey threatens to retaliate over US sanctions in escalating dispute between Nato allies

"The decision, which disrespectfully intervenes in our judicial system, will seriously damage the constructive efforts made in order to resolve problems between the two countries", Ankara's foreign ministry said.

The row over Mr Brunson escalated last week when US Vice President Mike Pence, like the pastor an evangelical Christian, said Turkey would face "significant sanctions" if this "innocent man of faith" was not freed.

The Erdogan government has vowed to retaliate against the US sanctions, announced Wednesday, but has not revealed what they will be.

This comes after the US slapped sanctions on Turkish government officials earlier this week for their role in his capture.

Also caught in the spat is a plan for the United States military to deliver new F-35 fighter jets to Turkey.

"Brunson needs to come home, as do all the Americans being held by the Turkish government".

US Secretary of State Mike Pompeo and Turkish Foreign Minister Mevlut Cavusoglu met on the sidelines of a regional security forum in Singapore, their first meeting since the crisis began.

"They've been holding these folks for a long time".

Cavusoglu also said the talks were "extremely constructive" but warned in comments to Turkish media that all the issues would not be solved "after one meeting".

Turkish President Recep Tayyip Erdogan said he will seek worldwide arbitration if the Trump administration fails to deliver the fighter jets.

Erdogan saYS Turkey will never step back from defense industry projects, saying 48 out of the 400 projects are related to defence industry.

The lira hit a record low of 5.0934 to the dollar, recovering to trade at 5.0605 by 1434 GMT.

The case is now at the centre of a bitter row between North Atlantic Treaty Organisation allies Ankara and Washington after the USA on Wednesday imposed sanctions on the Turkish justice and interior ministers claiming they played a major role in the arrest and detention of the pastor. "We consider this one of the many issues that we have with the Turks".

He is accused of carrying out activities on behalf of two groups viewed by Ankara as terrorists: the movement of the US-led Muslim preacher Fethullah Gulen blamed for the July 2016 coup attempt and the Kurdistan Workers' Party (PKK). His next hearing is on October 12.

After Ankara launched an offensive in January supporting Syrian rebels against the Kurdish People's Protection Units (YPG) militia in its western enclave of Afrin in Syria, the United States called for restraint.

Ankara is turning towards China to overcome what Erdogan said were "subjective evaluations" from ratings agencies.

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