Egypt’s president says the nation’s revenue from the Suez Canal has experienced a significant decline of 60%, amounting to over $6 billion, in recent months due to disruptions in Red Sea shipping caused by attacks from Yemen’s Houthis.
During a graduation ceremony at the Police Academy in Cairo, President Abdel Fattah el-Sissi said, “The current developments are profoundly serious and may lead to an escalation of conflict in the region, jeopardizing stability.”
He further stated, “We have suffered a loss of more than 50-60% in revenue from the Suez Canal, with losses exceeding $6 billion over the past 7-8 months.” The canal serves as a crucial source of foreign currency for Egypt. Hence, a loss of revenue there could massively affect Egypt’s foreign reserve.
The Iran-backed Houthis have prompted shipping companies to reroute their vessels away from the Red Sea, consequently affecting the Suez Canal, which connects to the Mediterranean Sea.
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The Houthis claim their actions are aimed at vessels associated with Israel and its allies, as a show of solidarity with Hamas in Gaza.
The Egyptian president cautioned that if the situation persists, there would be “serious repercussions in our region and potentially across the globe.”
