Suez Canal revenue has recorded a considerable decline of up to 50% with the escalating tension in the Red Sea region, Russian news agency TASS reported Egyptian President Abdel Fattah al-Sisi as saying on Monday.
‘The situation in the Gaza Strip and events related to it affect Egypt as well. In particular, previously the Suez Canal brought in some $10 billion per day, and now we register a decrease in revenues by 40–50%,’ the president said in his keynote speech at the opening of the EGYPES-2024 (Egypt Energy Show).
Despite these setbacks, the Egyptian president gave assurances that the country would continue to fulfill its commitments to international partners across various sectors.
The Suez Canal, a critical maritime route for global trade, significantly contributes to Egypt’s economy and foreign currency reserves. Last year, revenues from the canal exceeded $10 billion, underscoring its importance to the national economy.
The decline in revenues comes in the wake of heightened tensions following the escalation of the Palestinian-Israeli conflict in the Gaza Strip.
The Ansar Allah movement (the Houthis) issued warnings of targeted strikes on Israeli territories and obstructed ships linked to Israel from traversing the Red Sea and the Bab el-Mandeb Strait.
This blockade is in response to Israel’s military actions against the Palestinian group Hamas. The Houthis have since launched attacks on numerous civilian vessels in the Red Sea and Gulf of Aden, escalating the situation further.
A recent attack by Houthi rebels targeted the UK vessel, Rubymar, in the Gulf of Aden, causing substantial damage and putting the ship at risk of sinking.
