Egypt’s Suez Canal Revenue Losses Reach $800 Million Monthly due to Regional Instability

Egypt’s President Abdel Fattah al-Sisi announced a monthly revenue loss of approximately $800 million from the Suez Canal, primarily due to disruptions caused by Yemen’s Houthis attacking vessels in the Red Sea. The ongoing conflict and threats from the Houthis exacerbate the situation, with significant economic implications for Egypt and global shipping costs.

In a recent announcement, Egyptian President Abdel Fattah al-Sisi revealed that Egypt’s monthly revenue losses from the Suez Canal have surged to approximately $800 million. This decline is attributed to ongoing tensions in the region, particularly attacks on vessels by Yemen’s Houthis in the Red Sea.

Since November 2023, the Iran-backed Houthis have targeted vessels in the Red Sea, which has significantly disrupted global shipping routes. As ships reroute around Africa to avoid the volatile area, shipping costs have risen accordingly, exacerbating economic challenges.

While the Egyptian presidency’s statement did not explicitly name the Houthis, President Sisi previously indicated that these disruptions have cost Egypt an estimated $7 billion in Suez Canal revenue loss for 2024. This revenue decline poses a substantial threat to the Egyptian economy.

The Houthis have escalated their threats, announcing intentions to resume attacks on U.S. vessels in the Red Sea following recent U.S. airstrikes in Yemen. They also threaten to target Israeli ships if the blockade on aid entering Gaza is not lifted, further complicating the regional shipping landscape.

In summary, Egypt’s Suez Canal faces a critical revenue loss of around $800 million monthly due to the heightened regional tensions and attacks by Yemen’s Houthis. This situation jeopardizes Egypt’s economy and global shipping routes, particularly as the Houthis threaten further aggression against both U.S. and Israeli vessels.

Original Source: money.usnews.com