Egypt Reports $7 Billion Loss from Suez Canal

Egypt's Suez Canal has experienced a dramatic revenue decline of over 60% in 2024, translating to a loss of approximately $7 billion compared to the previous year, primarily due to escalating regional tensions and repeated attacks by Houthi rebels on commercial shipping in the Red Sea. These assaults, reportedly in solidarity with Palestinians amid the ongoing conflict, have forced shipping companies to divert vessels to longer routes around Africa, disrupting global trade and increasing shipping costs. President Abdel Fattah al-Sisi highlighted the economic ramifications of this decline, which exacerbates Egypt's existing financial crises, including significant external debt. To mitigate these issues, the International Monetary Fund has proposed a new financing agreement to bolster Egypt's economy, contingent on certain reforms. Additionally, modernization projects for the Suez Canal are underway to enhance its capacity and global significance. The situation underscores the interconnectedness of regional conflicts and global trade dynamics.