Egypt’s President Sisi stated that the Suez Canal is losing about $800 million monthly due to disruptions from Houthi attacks in the Red Sea. These attacks have forced shipping vessels to bypass the canal, raising costs significantly. The Houthis vowed to escalate their attacks against U.S. and Israeli vessels, complicating the maritime security landscape further.
Egypt’s President Abdel Fattah al-Sisi announced that the Suez Canal is currently facing monthly revenue losses nearing $800 million. These losses are attributed to heightened regional tensions, particularly due to attacks on vessels by Yemen’s Iran-backed Houthis in the Red Sea.
Since November 2023, the Houthis’ attacks have intensified as a show of support for Palestinians in Gaza amidst the conflict with Israel. This has disrupted global shipping routes, prompting vessels to avoid the Suez Canal and redirect their journeys around Africa, which significantly increases shipping costs.
While the Egyptian presidency refrained from explicitly mentioning the Houthis, President Sisi indicated that disruptions in 2024 had already resulted in a loss of approximately $7 billion in Suez Canal revenues. The Houthis have declared they will resume targeting U.S. ships as retaliation for recent U.S. airstrikes on Yemen.
Additionally, the group has warned of renewed attacks on Israeli vessels passing through the Red Sea unless Israel alters its humanitarian blockade on Gaza. These developments highlight the increasing complexity of maritime security in the region.
In summary, the Suez Canal is experiencing significant financial losses due to regional conflicts, particularly the aggressive actions of the Houthis against shipping vessels. President Sisi emphasizes the urgent economic ramifications, while the Venezuelan militia’s threat to escalate their attacks underscores the precarious situation for international maritime trade. The global shipping industry, hence, faces continued disruption and financial strain as tensions rise in the Red Sea.
Original Source: money.usnews.com
