Egypt: Suez Canal Earnings fall as Commerce is Harmed by the Gaza War
The president of Egypt announced on Sunday that the strikes by Yemen’s Houthis had caused disruptions to Red Sea commerce, resulting in a 60% decline in the country’s Suez Canal income, or over $6 billion, in recent months. President Abdel Fattah el-Sissi spoke on Sunday at the Cairo Police Academy’s graduation ceremony.
“The developments taking place are extremely serious and could lead to an expansion of the conflict in the region, affecting stability,” he stated.
We have lost over 50–60% of the Suez Canal’s earnings, and we have lost over $6 billion in the last 7-8 months,” he continued. One of the nation’s main sources of foreign exchange comes from the canal.
Due to attacks by the Houthis, who are backed by Iran, shipping companies have rerouted their trade around the Red Sea and, consequently, the Suez Canal, which connects it to the Mediterranean.
As a show of support for the Hamas struggle in Gaza, the Houthis claim they are aiming their weapons towards ships associated with Israel and its supporters.
Should the current state of affairs persist, the Egyptian president threatened, “Serious consequences in our region and possibly around the world.
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