Egyptian President Abdel Fattah al-Sisi announced on Monday that the Suez Canal is losing around $800 million in revenue each month due to regional instability.
- President al-Sisi announced Suez Canal is losing around $800 million monthly.
- Houthi rebels responsible for disrupting global shipping and increasing costs.
- President Sisi estimated disruptions could cost Egypt $7 billion in 2024.
Egyptian President Abdel Fattah al-Sisi announced on Monday that the Suez Canal is losing around $800 million in revenue each month due to regional instability.
Iran-backed Houthis have attacked vessels in the Red Sea area since November 2023 in support of Palestinians in Gaza during the war with Israel, Reuters reported.
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Attacks on vessels in the Red Sea area reduced traffic through the Suez Canal, the shortest maritime route between Asia and Europe, through which about 15 per cent of global maritime trade volume normally passes. Consequently, shipping costs have increased.
The Egyptian presidency’s statement did not explicitly mention the Houthis, but President Sisi previously estimated in December that disruptions to the Suez Canal could cost Egypt around $7 billion in lost revenue in 2024.
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Meanwhile, the Yemeni Houthi group has recently vowed to resume attacks on U.S. vessels in the Red Sea, citing retaliation for U.S. airstrikes on Yemen that killed at least 53 people on Saturday, the largest U.S. military operation in the Middle East since President Donald Trump took office in January.
Last week, the Houthis also warned they would resume targeting Israeli ships in the Red Sea if Israel did not lift restrictions on humanitarian aid entering Gaza.
