Egypt’s President Abdel Fattah al-Sisi reported monthly Suez Canal revenue losses of about $800 million, attributed to Houthi attacks in the Red Sea. Since November 2023, these attacks have forced ships to avoid the Suez Canal, raising shipping costs and disrupting global trade. The overall revenue loss for 2024 is projected to be about $7 billion due to this situation.

The President of Egypt, Abdel Fattah al-Sisi, has indicated that Egypt is facing monthly revenue losses from the Suez Canal amounting to approximately $800 million. This is attributed to escalating tensions in the region, specifically due to attacks on vessels in the Red Sea by the Iran-backed Houthis. This situation has necessitated that ships divert their routes around Africa, impacting global shipping and increasing costs.

Since late 2023, the Houthis have intensified attacks on vessels in the Red Sea, linking their actions to the ongoing conflict involving Palestinians in Gaza and Israel. Although Sisi’s statement did not explicitly reference the Houthis, he previously mentioned that these disruptions could lead to a revenue decrease of around $7 billion from the Suez Canal in 2024.

In a recent escalation, the Yemeni group threatened to increase attacks on U.S. vessels in the Red Sea as retaliation for American military actions that resulted in civilian casualties in Yemen. They also announced intentions to target Israeli ships if Israel continues its blockade on aid delivery to Gaza, further complicating maritime security in the region.

In summary, the Suez Canal is currently experiencing significant revenue losses due to ongoing regional conflicts, particularly linked to Houthi attacks in the Red Sea. These disruptions have not only led to heightened shipping costs but have also compelled vessels to reroute, impacting global trade dynamics. The situation remains fluid, with further escalations anticipated if conditions do not improve.

Original Source: money.usnews.com