Egypt Faces $800 Million Monthly Losses in Suez Canal Revenues Due to Houthi Attacks
Egypt is suffering monthly revenue losses of $800 million from the Suez Canal due to Houthi attacks in the Red Sea. Disruptions have forced vessels to avoid the canal, impacting global shipping costs. President Sisi noted that losses could reach $7 billion in 2024 as tensions escalate, with the Houthis threatening more attacks on U.S. and Israeli ships.
President Abdel Fattah al-Sisi of Egypt announced that the Suez Canal is experiencing monthly revenue losses of approximately $800 million due to ongoing regional conflicts. Specifically, the Houthis, an Iran-backed group, have been attacking vessels in the Red Sea since November 2023, pushing shipping routes to bypass the canal and causing an increase in trade costs.
The Egyptian presidency did not explicitly mention the Houthis in its statement; however, President Sisi previously indicated that disruptions in 2024 may result in a revenue shortfall of about $7 billion for Egypt’s Suez Canal. These interruptions stem from heightened tensions in the region, which have significant implications for global shipping.
Recently, the Houthi group announced intentions to intensify attacks on U.S. vessels in the Red Sea, citing retaliatory motives for U.S. military actions in Yemen that resulted in numerous casualties. Furthermore, they warned that they would also target Israeli ships unless Israel lifted restrictions on humanitarian aid entering Gaza during the current conflict.
In summary, the ongoing conflicts, particularly with Houthi attacks in the Red Sea, are causing significant financial detriment to Egypt’s Suez Canal, resulting in losses of $800 million per month. With disruptions projected to amount to $7 billion in 2024, the geopolitical landscape remains precarious. Additionally, the threat of further attacks on vessels highlights the volatility in the region and its economic ramifications.
Original Source: money.usnews.com
