Suez Canal Faces $800 Million Monthly Loss Amid Houthi Attacks

Egyptian President Abdel Fattah al-Sisi revealed that the Suez Canal loses about $800 million every month due to the ongoing instability in the region, primarily related to Houthi attacks. These disruptions result in increased shipping costs and delays in global trade, with a projected $7 billion revenue decline for 2024. Tensions are rising as the Houthis threaten further strikes on U.S. and Israeli vessels.

President Abdel Fattah al-Sisi of Egypt announced that the Suez Canal incurs a significant loss of approximately $800 million per month due to persistent regional instability. The ongoing attacks by Yemen’s Houthis on vessels in the Red Sea are disrupting maritime operations, forcing many ships to avoid the Suez Canal altogether.

Since November 2023, the Iran-aligned Houthi group has targeted vessels in the Red Sea, justifying their actions as support for Palestinians amid the conflict with Israel. These disruptions have escalated shipping costs and delayed the pace of global trade significantly, with vessels opting to navigate around Africa instead.

Although President Sisi’s recent statement did not directly attribute these losses to the Houthi attacks, he had previously projected in December a potential $7 billion drop in Suez Canal revenue for the year 2024. The situation illustrates the broader economic implications of regional conflicts.

Furthermore, tensions escalated when the Houthis declared their intention to resume attacks on U.S. ships following a recent series of airstrikes by the U.S. on Yemen, which reportedly resulted in the deaths of at least 53 individuals. This operation marked a heightened military engagement in the Middle East since the return of former President Donald Trump to office in January.

In summary, the Suez Canal is experiencing a substantial financial impact due to regional instability, particularly from the Houthi attacks in the Red Sea. The financial losses totaling $800 million monthly and potential annual declines of $7 billion pose significant challenges for Egypt’s economy. The escalation in hostilities further complicates the situation as international maritime operations are disrupted, leading to increased shipping costs and delays in global trade.

Original Source: newscentral.africa