Egypt’s President Sisi reported that the Suez Canal is losing around $800 million per month due to regional instability, primarily resulting from Houthi attacks on vessels in the Red Sea. This situation forces ships to reroute around Africa, increasing shipping costs and contributing to projected losses of $7 billion by 2024.
President Abdel Fattah al-Sisi of Egypt announced that the country is experiencing significant monthly revenue losses from the Suez Canal, estimated at approximately $800 million. This downturn is attributed to the ongoing regional instability caused by Houthi attacks on vessels in the Red Sea, which have escalated since November 2023 amidst the conflict involving Palestinians in Gaza and Israel.
These attacks have led global shipping companies to reroute their vessels around Africa, thus avoiding the Suez Canal and significantly increasing shipping costs. While a statement from the Egyptian presidency did not specify the attackers, Sisi previously indicated that disruptions caused by these incidents would result in a projected loss of about $7 billion in Suez Canal revenue for Egypt in 2024.
The Houthis, supported by Iran, declared their intention to resume attacks on U.S. vessels in the Red Sea, a move that comes on the heels of recent U.S. military strikes in Yemen, which resulted in numerous fatalities. They further announced that they would target Israeli ships unless aid restrictions on Gaza were lifted, escalating tensions in the region.
In summary, Egypt is facing considerable financial setbacks due to the Houthi attacks disrupting shipping routes in the Red Sea. This situation has led to approximately $800 million in monthly revenue losses from the Suez Canal, with potential cumulative losses reaching $7 billion in 2024. The ongoing conflict continues to impact global shipping dynamics and regional stability significantly.
Original Source: money.usnews.com
