Egypt’s President Sisi reported approximately $800 million in monthly losses from Suez Canal revenues due to regional conflict, particularly Houthi attacks in the Red Sea, which have forced vessels to divert routes and increased shipping costs.
President Abdel Fattah al-Sisi of Egypt announced that the country is facing monthly revenue losses of approximately $800 million from the Suez Canal. This downturn is attributed to ongoing regional tensions, particularly due to attacks on vessels in the adjacent Red Sea by Yemen’s Houthi movement. This group has engaged in assaults since November 2023, escalating difficulties in global shipping and prompting vessels to circumvent the Suez Canal, resulting in increased shipping costs.
Although the Egyptian presidency did not explicitly mention the Houthis, President Sisi indicated that the disruptions could cost Egypt about $7 billion in lost revenue for the Suez Canal throughout 2024. The situation has worsened as the Houthis are threatening to target U.S. vessels in retaliation for recent military actions by the United States in Yemen, which resulted in numerous casualties. Furthermore, there are indications that renewed assaults on Israeli shipping may occur unless Israel lifts its blockade on aid entering Gaza.
In summary, Egypt’s Suez Canal is currently experiencing substantial revenue losses, around $800 million monthly, primarily due to attacks by the Houthis in the Red Sea. This disruption is significantly impacting global shipping routes and costs, while also posing broader geopolitical risks in the region. The potential for further escalation underscores the urgent need for diplomatic solutions to restore stability.
Original Source: money.usnews.com
