Egyptian President Abdel Fattah al-Sisi announced that the Suez Canal is losing $800 million monthly due to Houthi attacks, causing ships to reroute around Africa. These disruptions are projected to decrease canal revenue by $7 billion in 2024. Regional tensions are escalating, with the Houthis vowing to target U.S. and Israeli vessels in response to military actions.
Egyptian President Abdel Fattah al-Sisi reported that the Suez Canal is incurring a loss of approximately $800 million in monthly revenue due to ongoing regional instability. The disruptions are primarily attributed to attacks by Yemen’s Houthi group, which have been targeting vessels in the Red Sea since November 2023, citing their support for Palestinians amid the conflict with Israel.
Vessels are being forced to avoid the Suez Canal, rerouting instead around Africa. This diversion has led to increased shipping costs and has caused significant delays in global trade. Although the recent statement from the Egyptian presidency did not specifically reference the Houthis, President Sisi had previously projected a potential $7 billion decrease in Suez Canal revenue for the year 2024.
Tensions have risen following the Houthis’ commitment to target U.S. ships in retaliation for U.S. airstrikes in Yemen, which resulted in the deaths of at least 53 individuals. This action marks the largest military operation by the United States in the Middle East since President Donald Trump resumed office in January. The Houthis have also threatened to renew assaults on Israeli vessels unless Israel lifts its blockade on aid to Gaza.
The reported losses of $800 million monthly for the Suez Canal highlight the severe impacts of regional instability and ongoing conflicts on global trade. The Houthi attacks have significantly disrupted maritime operations, compelling vessels to reroute and increasing shipping costs. Furthermore, the escalation of military tensions in the region, particularly against U.S. and Israeli interests, adds to the complexities surrounding the Suez Canal’s operational challenges moving forward.
Original Source: newscentral.africa
