Red Sea Conflict Drains Egypt's Suez Canal Revenue

Regional conflicts in the Red Sea, mainly due to Houthi attacks on ships, have resulted in Egypt losing around $7 billion in Suez Canal revenue for 2024. The attacks forced shipping companies to reroute vessels, heavily impacting global trade and increasing costs.

CAIRO, Dec 26 (Reuters) - Egypt's Suez Canal has suffered a significant financial blow in 2024 due to escalating regional tensions and conflicts in the Red Sea. President Abdel Fattah al-Sisi announced the loss of approximately $7 billion compared to the previous year.

The sharp decline, over 60% less in revenue compared to 2023, results from a series of attacks on commercial vessels by Houthi fighters from Yemen. These attacks are reportedly in solidarity with Palestinians amidst the ongoing Israeli-Palestinian conflict.

The sustained aggression has compelled shipping companies to circumvent the Suez Canal, opting for longer, more costly routes around Africa. This strategic shift has disrupted global trade, pushing shipping costs higher and causing significant delivery delays worldwide.

(With inputs from agencies.)