President Abdel Fattah al-Sisi announced that the Suez Canal is losing around $800 million each month due to regional instability caused by Houthi attacks in the Red Sea. These disruptions have forced ships to avoid the canal, leading to increased shipping costs and delays in global trade. Sisi previously forecasted a total revenue loss of $7 billion for 2024 due to these ongoing issues.
In a recent statement, Egyptian President Abdel Fattah al-Sisi revealed that the Suez Canal is incurring revenue losses of approximately $800 million per month due to regional instability. The ongoing attacks by Yemen’s Iran-backed Houthi group on vessels in the Red Sea have significantly disrupted shipping routes, compelling many vessels to circumvent the Suez Canal in favor of a longer route around Africa, consequently increasing shipping costs and delaying global trade.
Since November 2023, the Houthis have claimed responsibility for attacks on maritime traffic in the Red Sea, framing their actions as support for Palestinians amidst the escalating conflict in Gaza. Although President Sisi’s statement did not directly reference the Houthis, he has indicated that such disruptions could lead to a total revenue decline of $7 billion for the Suez Canal in 2024.
The situation in the region has worsened, particularly after the Houthis threatened to intensify their attacks on U.S. shipping as a response to recent U.S. airstrikes in Yemen. These airstrikes, conducted on Saturday, resulted in the deaths of at least 53 individuals and are noted as the most significant U.S. military engagement in the Middle East since President Trump took office in January. Additionally, the Houthis issued warnings regarding renewed attacks on Israeli vessels, contingent upon Israel’s lifting of the blockade on aid to Gaza.
In summary, the Suez Canal’s revenue is declining significantly due to increased shipping disruptions caused by the Houthi attacks in the Red Sea. The geopolitical tensions in the region, including recent U.S. military actions and threats of further strikes, exacerbate the situation, threatening both regional stability and global trade efficiency.
Original Source: newscentral.africa
