Suez Canal Revenue Tumbles Amid Middle East Turmoil

The Suez Canal's revenue dropped significantly due to regional conflicts, notably the Houthi rebels' attacks on shipping to Israel. This decrease impacted global trade, with only 13,213 ships passing through in 2024, reflecting a 50% decline from 2023. The canal remains a critical trade route despite challenges.

In a striking economic downturn, Egypt reported a near two-thirds reduction in revenue from the Suez Canal, crucial to its foreign currency reserves. Officials attributed this decline to escalating conflicts in the Middle East, significantly disrupting traffic through this vital global trade artery.

The Suez Canal Authority announced that the canal's revenue plummeted to USD 3.991 billion in 2024 from a historic USD 10.25 billion in 2023. They pinpointed the turmoil to attacks orchestrated by Yemen's Houthi rebels, particularly impacting routes heading to Israel amidst ongoing conflict in Gaza.

The canal experienced a drastic 50% drop in traffic, with only 13,213 ships transiting in 2024 compared to over 26,000 in 2023. Despite these setbacks, Egyptian authorities remain committed to maintaining the canal's operations, reinforcing its pivotal role in international trade.

(With inputs from agencies.)