Egypt suffers monthly Suez Canal revenue losses of $800 million due to Houthi attacks, forcing ships to reroute around Africa, leading to increased shipping costs and an estimated loss of $7 billion for 2024. The Houthis have threatened further attacks on U.S. and Israeli vessels, escalating regional tensions.
Egypt’s President Abdel Fattah al-Sisi reported a significant decrease in monthly revenues from the Suez Canal, estimating losses of about $800 million. This decline is attributed to the regional tensions caused by Houthi attacks on vessels in the Red Sea, which have escalated since November 2023.
The Iran-backed Houthi movement’s actions are particularly impacting global shipping, as they compel vessels to avoid the Suez Canal, opting instead to reroute around Africa. This change in shipping routes significantly increases logistics costs and overall trade expenses.
Sisi noted that the cumulative impact of these disruptions resulted in a projected revenue shortfall of approximately $7 billion for Egypt in 2024. The ongoing situation reflects the interconnectedness of geopolitical conflicts and their effects on critical trade routes.
The Houthis have pledged to continue their assaults against U.S. vessels in retaliation for recent American military strikes in Yemen. These attacks pose ongoing risks to maritime security in the region, further complicating the situation for international shipping.
Additionally, the group has indicated intentions to resume targeting Israeli ships unless restrictions on aid to Gaza are lifted. This escalation adds another layer of complexity to the already fraught dynamics in the Red Sea, which is a critical trade passage for many nations.
In summary, President Sisi’s announcement highlights the severe financial impact of geopolitical tensions on Egypt’s Suez Canal revenues, with losses nearing $800 million monthly. The ongoing Houthi attacks are significantly disrupting global shipping routes, thereby increasing operational costs for trade. This situation, exacerbated by conflicts surrounding Gaza, signals a critical moment for maritime security and economic stability in the region.
Original Source: money.usnews.com
