Cyprus was conquered in 1570 although a large part of the Turkish fleet was destroyed by the Crusaders at Inebahtin the same year.
Selim was succeeded by his son Amurath the Third. The long wars which had lasted for 12 years ended with the victory of the Turks, the Peace of Istanbul being signed in 1590. Tebriz, Karadagh Gendje, Kars, Tilflis, Shehrizar, Nihavend and Luristan were added to the Empire.
The Austrian-Ottoman Wars began again when the King of Erdel and the Mayors of Walachia and Moldavia, in alliance with Rudolph, the Austrian Emperor, rebelled against Turkish rule. During these wars Amurath died and his place was taken by his son, Mehmed the Third in 1595. The fortress of Eghri was siezed in 1596 and the Austrian army routed at Hachova. The Castle of Kanije was taken, Austrian attempts to retake the citadel in 1601 failing in the face of stern resistance by Tiryaki Hassan Pasha. Transylvania, Walachia and Moldavia were subjected to the Ottomans once again and in 1606 the Treaty of Zitvator was signed. During the war Mehmed died, to be succeeded by his son Ahmed the First (1603).
Economic difficulties began in the late 16th century, when the Dutch and British completely closed the old international trade routes through the Middle East. As a result the prosperity of the Middle Eastern provinces declined. The Ottoman economy was disrupted by inflation, caused by the influx of precious metals into Europe from the Americas and by an increasing imbalance of trade between East and West. As the treasury lost more of its revenues to the depredations of the devsirme, it began to meet its obligations by debasing the coinage, sharply increasing taxes, and resorting to confiscations, all of which only worsened the situation. All those depending on salaries found themselves underpaid, resulting in further theft, overtaxation, and corruption. Holders of the timars and tax farms started using them as sources of revenue to be exploited as rapidly as possible, rather than as long-term holdings whose prosperity had to be maintained to provide for the future. Political influence and corruption also enabled them to transform these holdings into private property, either as life holdings (malikāne) or religious endowments (vakif), without any further obligations to the state.
Inflation also weakened the traditional industries and trades. Functioning under strict price regulations, the guilds were unable to provide quality goods at prices low enough to compete with the cheap European manufactured goods that entered the empire without restriction because of the Capitulations agreements. In consequence, traditional Ottoman industry fell into rapid decline. Christian subjects combined with foreign diplomats and merchants, who were protected by the Capitulations, largely to drive the sultan's Muslim and Jewish subjects out of industry and commerce and into poverty and despair
In 1603, while the Ottomans were fighting with the Austrians, the Iranian Shah attacked and the second war with Persia began. The war ended with an agreement that the Shah would pay 200 yuks (an ancient unit of weight) of silk to the Emperors each year. War again broke out when this agreement was broken but it was an inconclusive affair in which neither side gained the upper hand.
Rebellion broke out in Anatolia (Jelali Revolts) and from this point on, the great Ottoman Empire began to decline. Military achievements began to diminish. The rebellion in Anatolia dragged on and was only subdued in the time of Amurath Pasha (the Well-digger).
Mustapha the First succeeded Ahmed on the latter's death, but was dethroned due to ill health. Osman the Second took power instead of him. The Polish Cossacks invaded Ottoman lands and war broke out. Osman realised that the Janissaries were out of control and undisciplined and, therefore, resolved to abolish them and found a new military corps. Hearing of this the Janissaries rioted and in 1622 Osman was murdered.
Mustapha was made Sultan for the second time but, again, his reign did not last long. He was dethroned and Amurath the Fourth was made Sultan. A new war broke out between the Empire and Persia. Baghdad was lost and, in Anatolia, Abaza Mehemet Pasha and, in Istanbul, the Sultan's Bodyguard, rioted against Imperial administration. Amurath, in response, brought in fierce rules and laws and subdued the rebellions by quick, bloody action.
Amurath reorganised the Empire and waged a fierce campaign against Persia. Revan was regained and, in a second campaign, Baghdad was taken. When Amurath died in 1640 his brother Ibrahim (Abraham) took his place.