Egyptian President Abdel Fattah al-Sisi has reported that the Suez Canal is losing $800 million monthly due to disruptions from Houthi attacks in the Red Sea. These disruptions force ships to reroute around Africa, increasing shipping costs and delaying global trade. Tensions are compounded by threats from the Houthis against U.S. and Israeli vessels amid escalating military actions in the region.
On Monday, Egyptian President Abdel Fattah al-Sisi reported a substantial revenue loss for the Suez Canal, estimating a decline of approximately $800 million per month. This downturn is attributed mainly to ongoing regional instability linked to persistent attacks by Iran-backed Houthis disrupting shipping in the Red Sea.
Since November 2023, the Houthis have actively targeted vessels in the Red Sea. They justify these actions based on their support for Palestinians amid the ongoing conflict with Israel. As a result, many ships are diverting around Africa, which significantly increases shipping costs and delays international trade.
While Sisi’s statement did not directly reference the Houthis, he previously anticipated a total revenue loss of $7 billion for the Suez Canal in 2024 due to the ongoing maritime disruptions.
The situation further deteriorated after the Houthis threatened renewed strikes on U.S. vessels following significant U.S. airstrikes on Yemen that resulted in numerous casualties. This military action represents the most extensive U.S. operation in the Middle East since President Donald Trump’s recent return to office.
Moreover, the Houthis issued warnings regarding potential attacks on Israeli ships unless Israel lifts its blockade on humanitarian aid entering Gaza, further complicating the regional security landscape.
In summary, the Suez Canal is experiencing a critical revenue decline of $800 million monthly due to regional instability initiated by Houthi attacks and the resulting impacts on shipping routes. This situation reflects broader tensions in the Middle East, influenced by reactions to U.S. military actions and the ongoing conflict regarding Gaza. The potential for continued disruptions raises concerns for global trade and economic stability.
Original Source: newscentral.africa
