Knowledge of the regional crustal deformation and stress field is fundamental to understanding and constrain the ongoing Hovsgol basin evolution. The 2021 Mw 6.7 Turt earthquake provides an unprecedented opportunity to probe the local tectonic stress field and upper crust deformation. We investigate the coseismic surface displacements and invert fault slip models using Interferometric Synthetic Aperture Radar observations and teleseismic data. The mainshock occurred as a result of normal faulting with a right-lateral strike-slip component on an NW striking plane, which is consistent with the transtensive local stress field inverted from regional focal mechanisms. Our results also suggest that the current deformation of the Hovsgol basin is dominated by half-graben forming. The 1950 Mondy earthquake may advance the 2021 Turt earthquake by ~7% recurrence interval, meanwhile, the 2021 Turt earthquake may increase the potential seismic hazard on the neighbor Mondy and South Hovsgol Fault, which deserves more attention.