Egypt’s President Sisi reports that the Suez Canal is losing $800 million monthly due to disruptions caused by Houthi attacks in the Red Sea. This conflict has forced ships to reroute, increasing costs and delays in global trade. Estimated losses could reach $7 billion for 2024. Additionally, tensions have intensified over U.S. airstrikes in Yemen and renewed threats against Israeli vessels.
The Suez Canal is facing a significant revenue decline of about $800 million per month, attributed to ongoing regional instability, as reported by Egyptian President Abdel Fattah al-Sisi. The disruption is primarily caused by the Houthi group, which has been targeting vessels in the Red Sea since November 2023, asserting their motives relate to support for Palestinians in Gaza amid the ongoing Israel conflict.
The Houthi attacks have compelled maritime traffic to avoid the Suez Canal and navigate around Africa instead, leading to increased shipping expenses and delays in global trade. While the recent statement from the Egyptian presidency did not directly reference the Houthis, Sisi mentioned in December that the estimated revenue loss for the Suez Canal could reach $7 billion for the year 2024.
Moreover, tensions have heightened further after the Houthis announced they would resume strikes on U.S. vessels in retaliation for recent U.S. airstrikes on Yemen. These strikes resulted in the deaths of at least 53 individuals and represent the most extensive military undertaking by the U.S. in the Middle East since President Donald Trump’s return to office in January.
Additionally, the Houthis have issued a warning stating they will restart their attacks on Israeli ships traversing the Red Sea unless Israel ends its blockade on aid directed to Gaza. This escalation reflects the broader conflicts impacting regional maritime operations, ultimately influencing global trade routes and trends.
In summary, the Suez Canal is currently enduring a substantial financial shortfall due to disruptions stemming from Houthi attacks in the Red Sea. This regional instability not only impacts Egypt’s revenue but also has ramifications for global shipping and trade, as vessels are forced to reroute. Furthermore, escalating tensions between the Houthis and U.S. forces add another layer of complexity to the situation, potentially leading to further maritime disruptions.
Original Source: newscentral.africa
