Suez Canal Faces $800 Million Monthly Loss Due to Houthi Attacks

Egyptian President Abdel Fattah al-Sisi announced that the Suez Canal is losing $800 million monthly due to disruptions caused by Houthi attacks in the Red Sea. The Houthis have been targeting vessels since November 2023, driving up shipping costs and delaying global trade. Tensions escalated with recent U.S. airstrikes in Yemen, prompting further threats against maritime operations in the region.

At a press conference on Monday, Egyptian President Abdel Fattah al-Sisi reported that the Suez Canal is incurring losses of approximately $800 million per month due to regional instability, particularly from ongoing attacks by Yemen’s Houthi group. These disruptions have forced some vessels to avoid the canal, opting instead to navigate around Africa, consequently increasing shipping costs and delaying international trade.

Since November 2023, the Iran-backed Houthi rebels have targeted ships in the Red Sea, citing their support for Palestinians amidst the conflict with Israel. Although the Egyptian presidency did not specifically identify the Houthis in its statements, President Sisi had previously projected in December that the impact of these interruptions could lead to a $7 billion decrease in revenue for the Suez Canal in 2024.

Tensions have escalated further following the Houthis’ declaration to renew attacks on U.S. ships in retaliation for recent airstrikes initiated by the United States in Yemen, which resulted in at least 53 fatalities. These airstrikes mark the most significant U.S. military engagement in the region since President Donald Trump resumed office this January.

Moreover, the Houthis have issued warnings that they will recommence assaults on Israeli vessels transiting the Red Sea unless Israel agrees to lift its blockade on humanitarian aid directed to Gaza. This situation continues to heighten the precariousness of maritime operations in the region.

In conclusion, the ongoing instability in the Red Sea, predominantly attributable to Houthi attacks, is severely impacting the Suez Canal, resulting in significant monthly losses. With shipping costs rising and delays in global trade, the situation remains critical. The potential for future conflicts is further exacerbated by recent U.S. military actions and the Houthis’ threats against both American and Israeli vessels.

Original Source: newscentral.africa