Egypt’s President Abdel Fattah al-Sisi reported that monthly revenue losses from the Suez Canal have reached $800 million due to Houthi attacks in the Red Sea. These attacks are disrupting global shipping and could cost Egypt $7 billion in revenues in 2024. The Houthis have vowed to continue attacks on U.S. and Israeli vessels, exacerbating tensions in the region.
Egypt’s President Abdel Fattah al-Sisi announced that the Suez Canal is currently facing significant financial losses, totaling approximately $800 million monthly. This decline in revenue is attributed to the ongoing regional situation, specifically the attacks on vessels by Yemen’s Houthis in the Red Sea area.
Since November 2023, the Iran-backed Houthi group has been targeting maritime vessels, impacting global shipping dynamics. These attacks have compelled shipping companies to avoid the Suez Canal, resulting in increased trade routes around Africa and subsequently escalating shipping costs.
While the Egyptian presidency did not explicitly mention the Houthis, President Sisi previously indicated that the disruptions could cost Egypt an estimated $7 billion in Suez Canal revenues for 2024. This significant loss underscores the critical impact of regional conflicts on international trade.
Recently, the Houthis have threatened to intensify attacks on U.S. vessels in response to airstrikes that reportedly killed at least 53 individuals in Yemen, marking a serious escalation since the U.S. military involvement in the region began under President Trump. Furthermore, they have announced intentions to resume assaults on Israeli shipping if aid blockades for Gaza are not lifted.
The Suez Canal is experiencing severe revenue losses due to regional conflicts and ongoing attacks by the Houthis in the Red Sea. These disruptions have led to increased shipping costs and forced vessels to reroute, significantly impacting Egypt’s economy. The situation remains precarious, with potential for further escalations affecting maritime trade capabilities.
Original Source: money.usnews.com
