With the escalating crisis in Iraq, concerns are growing in Turkey over the economic fall out. Iraq is Turkey's second largest trading partner, with Turkish companies exporting roughly $14 billion a year.

With the radical Islamist group ISIL scoring major military gains in Iraq, concerns are growing about the economic impact for Turkey.

Sinan Ulgen is a visiting scholar for Carnegie Institute in Brussels.

"Turkey’s export to the countries in the region have been affected on two grounds. One because of the instability of course, but the other one is because of the land routes to other markets in the Middle East have been blocked by the instability in Iraq and Syria," said Ulgen.

But analysts say the impact on Turkish exports to Iraq could have been worse, because around 75 percent of those exports are to the relative stable Iraqi Kurdish region, which has largely escaped the impact of ISIL.

Turkish transit trade to the lucrative Gulf markets is another story, says political consultant Atilla Yesilada of Global Source Partners.

He says the Iraq crisis coincides with rising diplomatic tensions between Cairo and Ankara.

"The Egyptian authorities have started causing troubles for our trucks and ferries. [About] 30,000 lorries, trucks, had been traveling to Iraq before the crisis and now that the number has dropped to say 5,000," said Yesilada.

Turkish economic woes could yet worsen, with ISIL continuing to threaten regional stability.