>> Tension escalating in a brewing diplomatic crisis between Turkey and the US after both the NATO allies suspended visa services in a tit for tat fallout. The US mission to Turkey has suspended all non-immigrant services following the arrest of a US consulate employee in Istanbul on Wednesday. He's accused of links to Fethullah Gulen, a cleric who the Turkish government blames for last year's failed coup.
Turkey's justice minister has urged the US to reverse its decision, saying it's a matter for the Turkish Judiciary. Reuters' correspondent Dominic Evans in Istanbul says the latest spat is harming bilateral relations.>> The US consulate has dismissed those charges as absolutely baseless. Their announcement on Sunday that they were suspending visa services was very strongly worded and said they were having to review the Turkish commitment to the safety and security of their staff within Turkey.
>> In retaliation, Turkey's embassy in Washington blocked new applications from US citizens, in a statement using almost identical language.>> We've already seen this morning that Turkish stocks fell about 2 or 3% as soon as the market opened. The lira is also down. Some of the really big companies, Turkish Airlines, stocks were down 8%, Pegasus Airlines, 6%, which shows how concerned people are about the impact of tourism in Turkey.
>> Diplomatic ties between the two nations were already strained. In May, Turkish security officials were involved in street fighting with protesters during a visit to Washington.
d more frayed relations over Syria, where the US supports Kurdish YPG fighters, among their most effective partners in the fight against Islamic State.
Turkey says the group is linked to the outlawed PKK.