Egypt’s Suez Canal monthly losses reach $800 Million amid Red Sea attacks

Egypt’s Suez Canal is losing around $800 million per month in revenue due to regional instability, President Abdel Fattah al-Sisi said Monday according to Reuters. Since November 2023, Yemen’s Iran-backed Houthis have attacked ships in the Red Sea, forcing vessels to reroute around Africa, disrupting global trade, and increasing shipping costs. 

Though Egypt’s presidency did not name the Houthis directly, Sisi previously estimated that the disruption would cost Egypt $7 billion in lost canal revenue in 2024. The Houthis have vowed to resume attacks on U.S. and Israeli-linked ships in response to American strikes in Yemen and Israel’s blockade of Gaza. 

The Suez Canal, a vital global trade route, has been severely impacted as companies seek alternative paths, further straining Egypt’s economy. The ongoing crisis underscores the geopolitical risks affecting international shipping and the global economy.