Egypt hopes for recovery of Suez Canal revenue amid ceasefire in Gaza

Egypt’s Minister for Foreign Trade and Investment, Hassan El Khatib, expressed cautious optimism regarding the recovery of Suez Canal revenue following the recent ceasefire in Gaza.

“It’s not going to be an immediate switchback to the Suez Canal as we envisage,” said El Khatib in an interview with Bloomberg. He anticipates a gradual resumption of shipping activity, essential to Egypt’s economy.

Suez Canal revenues, which serve as a vital lifeline for the country, fell by at least 60% last year, resulting in an estimated loss of $7 billion.

The downturn in revenue was triggered by Houthi rebel attacks on ships in the Red Sea, described as acts of solidarity with the Palestinians. Over the past 14 months, the Iranian-backed rebels targeted vessels, disrupting international shipping.

On Wednesday, the Houthis released 25 crew members from the Galaxy Leader, a ship seized off the Yemeni coast in November 2023.

“This step comes in support of the ceasefire agreement in Gaza,” the Houthis said in a statement on rebel-controlled SABA news agency, the Associated Press reports.

The decision was reportedly influenced by requests from Hamas and intermediary Oman.

Following the ceasefire, the Houthis have pledged to cease attacks on U.S. and UK vessels, according to Bloomberg. However, with the agreement still in its early days, international shipping companies reportedly remain wary of returning to the Suez Canal.