Suez Canal Losses Surge Amid Red Sea Tensions

Egypt's President Abdel Fattah al-Sisi revealed that the Suez Canal faces monthly losses of $800 million due to regional conflict. Yemen's Houthis' Red Sea attacks, supporting Palestinians in the Gaza conflict, force ships to reroute, heightening global shipping costs. Egypt foresees $7 billion in lost canal revenue.

Egyptian President Abdel Fattah al-Sisi announced significant revenue losses from the Suez Canal, blamed on regional instability. The canal, a pivotal global shipping route, is reportedly losing around $800 million monthly due to heightened tensions in the area.

The Iran-backed Houthi rebels have targeted vessels in the Red Sea since November 2023, aligning their actions with support for Palestinians during the ongoing Gaza-Israel conflict. These attacks are compelling ships to bypass the Suez Canal, opting for longer routes around Africa, which in turn, inflates shipping expenses globally.

The presidency's statement alluded to broader impacts, with estimated lost revenue potentially reaching $7 billion in 2024. The situation heightens as threats continue, with Houthis planning further assaults against U.S. and Israeli ships unless specific geopolitical demands are met.

(With inputs from agencies.)