Because shipping is avoiding the Red Sea and the passage of the Suez Canal due to the ongoing attacks by the Houthis, Egypt is losing US$6bn in revenue.
The Suez Canal is an important source of income for the country. According to Egyptian Foreign Minister Badr Abdel Aati, the de facto blockade of the sea route by the Houthis has led to economic losses of around US$6bn. By way of comparison, Egypt had collected fees of US$7.2bn for the year 2023/24.
Since November 2023, there have been repeated attacks on ships in the region using missiles, drones and also from boats. The attacks are declared to be an act of “solidarity” with the Palestinians in the Gaza Strip. As a result, one of the world’s most important trade routes is being severely affected: Around 12% of global trade passes through the Suez Canal in normal times, as well as a third of container shipments from China to Europe.
Egypt suffers from the crisis in the region
The Houthis are waging a civil war against government troops in Yemen, but are also seen as an extension of Iran and are supported by Tehran with money and weapons. Initially targeting ships that were thought to have a connection to Israel, the attacks were expanded.
Despite ongoing US and UK airstrikes on Houthi-controlled areas in Yemen, the group has not ceased its attacks at sea. Since the beginning of the Gaza conflict in October last year, more than 90 merchant ships have been fired upon.
