Disruptions in the Red Sea, attributed to maritime attacks by Yemen’s Houthi militia, have cost Egypt over $7 billion in lost Suez Canal revenue this year, according to a statement from the Egyptian presidency released Thursday.
Revenue from the strategic waterway, a cornerstone of international trade, has plummeted by more than 60%, though exact figures were not disclosed.
The attacks, which began in late 2023, have severely impacted Egypt’s economy. While the Houthis have not directly targeted Egyptian infrastructure, their actions have effectively shut down key sections of the southern Red Sea and the Gulf of Aden. This has deterred major Western shipping firms from navigating through the Suez Canal, a critical corridor for goods moving between Europe and Asia.
The Suez Canal is a vital source of foreign currency for Egypt, whose $380 billion economy has been under significant strain. The Egyptian pound hit a record low this month, adding to the economic challenges posed by declining canal revenue.
In addition to targeting maritime shipping, the Houthis have intensified their drone and missile attacks on Israel. The group has stated that these operations will continue until Israel agrees to a ceasefire with Hamas in Gaza.
The fallout from these disruptions highlights the far-reaching implications of regional conflicts, with the ripple effects extending far beyond Yemen and Israel to global trade and national economies like Egypt’s.
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