Egyptian President Abdel Fattah al-Sisi reported that the Suez Canal is losing approximately $800 million per month due to Houthi attacks in the Red Sea, causing disruptions and rerouting of shipping traffic. Predictions suggest a significant revenue decline for 2024, amid rising tensions involving U.S. and Israeli vessels.
Egyptian President Abdel Fattah al-Sisi announced that the Suez Canal is currently losing around $800 million in monthly revenue due to ongoing regional tensions. Continued assaults by the Iran-backed Houthi group from Yemen have disrupted shipping activities in the Red Sea, particularly affecting transit through this vital waterway.
Since November 2023, the Houthis have targeted vessels in the Red Sea, claiming their actions support the Palestinian cause amid the ongoing conflict with Israel. As a result, many ships have diverted their routes around Africa, leading to increased shipping expenses and significant delays in global trade.
While the statement from the Egyptian presidency did not specifically reference the Houthi attacks, President Sisi had previously projected in December a potential revenue drop of $7 billion for the Suez Canal in 2024 due to these disturbances. This projection highlights the substantial economic impact of the current regional instability on Egypt’s key revenue source.
The situation has intensified as the Houthis threatened to renew strikes on U.S. vessels in retaliation for recent airstrikes conducted by the United States on Yemen, which resulted in numerous casualties. This escalation is noted as the most significant U.S. military operation in the Middle East since the return of President Donald Trump to office.
Furthermore, the Houthis have issued warnings regarding future attacks on Israeli vessels traversing the Red Sea unless Israel makes significant changes to its blockade on humanitarian aid entering Gaza. This threat adds an additional layer of complexity to the already fraught geopolitical climate in the region.
In summary, the Suez Canal faces significant financial losses estimated at $800 million every month due to regional instability spurred by Houthi attacks. With disruptions forcing ships away from this critical shipping route, Egypt anticipates a steep revenue decline in the coming year. The escalation of hostilities, particularly involving U.S. and Israeli interests in the region, continues to exacerbate the situation, presenting severe challenges for global trade and economic stability in Egypt.
Original Source: newscentral.africa
