A Turkish court on Sunday jailed President Tayyip Erdogan's main political rival, Istanbul Mayor Ekrem Imamoglu, pending trial on graft charges, in a move likely to stoke the country's biggest protests against the government in more than a decade, reports Reuters.

The decision to send Imamoglu to jail comes after the main opposition party, European leaders and tens of thousands of protesters criticised the actions against him as politicised and undemocratic.

Imamoglu has denied the charges, calling them "unimaginable accusations and slanders". "I am standing tall, I will never bow down," Imamoglu said on X, calling on supporters not to lose hope. "We will rip away this coup, this dark stain on our democracy all together."

The government denies that investigations are politically motivated and says courts are independent. It has warned against protests, especially given a nationwide ban on street gatherings that was extended on Saturday for four more days.

As the courtroom developments unfolded early on Sunday, members of Imamoglu's Republican People's Party (CHP), the main opposition against Erdogan's ruling alliance, were preparing to anoint Imamoglu as its candidate for the next presidential election.

He is the only nominee and hundreds of people had flocked to polling stations for the election to show support after the court ruling, after protests and skirmishes with police continued through the night in major cities.

No general election is scheduled until 2028. But if Erdogan, who has led Turkey for 22 years, is to run again, parliament would need to back an earlier election since the president will have reached his limit by that date. Imamoglu is leading Erdogan in some opinion polls.

The court said Imamoglu, 54, and at least 20 others were jailed as part of a corruption investigation, one of two that were opened against him last week.

In a statement, the court said Imamoglu was arrested for "establishing and leading a criminal organization, accepting bribes, embezzlement, unlawfully recording personal data, and rigging public tenders in connection with a financial investigation".

MARKET TURMOIL

Imamoglu is also facing terrorism charges, but was not formally arrested on those at the same time.

"Although there is strong suspicion of aiding an armed terrorist organization, since it has already been decided that he will be arrested for financial crimes, (his arrest) is not deemed necessary at this stage," the court said.

A future court ruling to jail him pending trial on terrorism-related charges could pave the way for the government to appoint a trustee to run the country's largest city. A conviction could lead to him being ruled out of running for the presidency.

The CHP said it would file an appeal against the ruling and elect someone to work as acting mayor.

Shortly after the court ruling, the defiant mayor said he would not give up and vowed to defeat Erdogan, while saying those who ran the investigation would be held accountable eventually.

"Fear does not change your fate! You will lose one way or another," Imamoglu said in the post on X, in a reference to Erdogan.

Thousands crowded outside the courthouse overnight and early on Sunday, as they awaited the rulings on the mayor.

"Imamoglu has become Erdogan's ... nightmare .... We will make Ekrem Imamoglu president," Mehmet Karatas, an opposition supporter, said outside the courthouse.

Imamoglu's detention has roiled markets, with the Turkish lira, stocks and bonds suffering heavy declines since Wednesday.

Turkish Central Bank Governor Fatih Karahan will meet with board members of Turkey's Banks Association on Sunday to discuss developments in the market, three banking sources with the knowledge of the matter said. The central bank declined to comment.

Meanwhile on the streets, thousands had gathered outside the Istanbul municipality building and the main courthouse on Saturday night, with hundreds of police stationed at both locations using tear gas and pepper spray pellets to disperse protesters, as the crowd hurled firecrackers and other objects at them.

Though most demonstrations have been peaceful, protesters also clashed with police in the western coastal province of Izmir and the capital Ankara for a third night in a row, with police firing water cannon at the crowds.

Turkish authorities have detained 323 people during protests over the investigation, Interior Minister Ali Yerlikaya said early on Sunday.

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At least 34 people, including two babies were killed when a contraband fuel depot exploded into flames in southern Benin near the border with Nigeria on Saturday.

According to Beninese Interior Minister Alassane Seidou, “a serious fire occurred in the town of Seme Podji. Another 20 people were seriously wounded in the incident.”

"I can't really give you the cause of the fire, but there is a large gasoline warehouse here and cars, tricycles and motorcycles come from morning to evening,” he added.

Nigeria is a main oil and gas producer where fuel smuggling is very common along its borders, particularly when the government maintains a subsidy to keep fuel prices low.

The majority of the victims were burnt and they could not be not be identified.

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