Turkey and the United States exchanged new threats of sanctions Friday, keeping alive a diplomatic and financial crisis that is threatening the economic stability of the North Atlantic Treaty Organisation country as a Turkish court rejected the appeal of an American pastor caught in the middle of the row.
This has worsened a crisis for Turkey's currency, the lira, which has lost about a third of its value against the dollar since January.
The lira, which has lost some 40 percent of its value this year, weakened beyond 6.21 against the United States dollar after the news, from 6.04 beforehand.
"We have more that we are planning to do if they don't release him quickly", Mnuchin said during a meeting of President Donald Trump's Cabinet.
"They have not proven to be a good friend", Trump said of Turkey during the Cabinet meeting.
United States sanctions and tariffs have contributed to a tumble in the Turkish lira, which dropped in value to 5.86 to the dollar on Friday following Mnuchin's warning.
Albayrak's ministry said they had discussed US sanctions against Turkey and agreed to act together in responding to such moves and to boost cooperation between their countries.
On the first day Trump threatened Turkey with sanctions for the treatment of Brunson, Vice President Mike Pence gave a prayer at the Ministerial to Advance Religious Freedom in which he said "to believers across America, I say a pray for pastor Brunson".
In U.S. markets, the Dow Jones Industrial Average .DJI rose 396.32 points, or 1.58 percent, to 25,558.73, the S&P 500 .SPX gained 22.32 points, or 0.79 percent, to 2,840.69 and the Nasdaq Composite .IXIC added 32.41 points, or 0.42 percent, to 7,806.52.
Erdogan's spokesman praised Qatari-Turkish relations on Twitter.
The Turkish court in Izmir upheld a lower-court decision that rejected lifting Brunson's house arrest, according to the state-run Anadolu agency.
The issue has led to a dramatic souring of U.S. -Turkey relations.
Turkey's finance minister sparked a recovery in the lira yesterday after he addressed thousands of global investors on a conference call.
The Trump administration said it would use a section of U.S. law that allows for tariffs on national security grounds to impose the increased duties.
Mr Erdogan earlier wrote in the New York Times that unless the USA changed course, Turkey would look for new friends and allies.
The currency crisis has deepened concerns about the broader economy - particularly Turkey's dependence on energy imports and whether foreign-currency debt levels pose a risk to the banking sector. He has been held in Turkey for two years and accused by local prosecutors of "terrorist" ties to the Islamist Gulen movement, which has been blamed for a failed coup in July 2016.