Egyptian President Abdel Fattah al-Sisi reported that the Suez Canal is incurring losses of $800 million per month due to regional instability and Houthi attacks. The Houthis’ actions have disrupted shipping routes, resulting in increased costs and delays. This situation poses a potential $7 billion revenue decline for 2024. Escalating tensions following U.S. airstrikes and threats against Israeli vessels further complicate the scenario.
In a recent address, Egyptian President Abdel Fattah al-Sisi announced that the Suez Canal is currently losing approximately $800 million in monthly revenue. This loss is attributed to ongoing regional instability and persistent attacks by Yemen’s Houthi group, which have disrupted shipping operations in the Red Sea.
Since November 2023, the Iran-backed Houthi group has targeted vessels in the Red Sea, justifying their actions by citing support for Palestinians in Gaza amidst the ongoing conflict with Israel. These attacks have compelled ships to avoid the Suez Canal, opting instead for longer routes around Africa, consequently increasing shipping expenses and causing delays in global trade.
Although President Sisi’s recent statement did not specify the Houthis’ involvement, he had previously estimated that these disruptions could lead to a revenue decline of approximately $7 billion for the canal in 2024.
The situation has further escalated following the Houthis’ declaration to renew attacks on U.S. vessels. These threats came in retaliation to recent U.S. airstrikes in Yemen that killed at least 53 individuals, marking the largest military operation by the U.S. in the region since President Donald Trump resumed office in January.
Furthermore, the Houthis have issued warnings regarding a potential restart of their attacks on Israeli ships traveling through the Red Sea, conditioned on the lifting of Israel’s blockade on aid destined for Gaza.
The Suez Canal is experiencing significant revenue losses of approximately $800 million monthly due to disruptions caused by Houthi attacks in the Red Sea. These developments further complicate global trade and elevate shipping costs, leading to an estimated $7 billion revenue drop for the canal in 2024. Tensions remain heightened as regional conflicts continue to influence maritime operations.
Original Source: newscentral.africa
