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.
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.”
