Houthi Attacks Disrupt Suez Canal Traffic, Straining Egypt's Economy

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The Suez Canal, a vital trade route for global shipping, faces a significant crisis due to recurrent attacks by Yemen's Houthi rebels. Since late 2023, the canal has seen approximately 250 assaults on passing ships, aimed at pressuring the international community regarding Israel's military actions in Gaza. This disruption has drastically reduced ship traffic; only 27 vessels passed through the canal by the end of December 2023, down from an average of 72, severely impacting cargo volume.

Egypt's Foreign Minister has reported a remarkable 60% decline in Suez Canal revenues, leading to an estimated loss of $7 billion in 2024. As a result, more than 6,500 vessels have changed their routes, opting instead to navigate around Africa. This decline comes at a time when Egypt is grappling with its own economic challenges, including a current account deficit exceeding $20 billion.

Despite these setbacks, Egyptian authorities remain optimistic, contending that the canal's strategic position between Asia and Europe will ensure its eventual recovery. Plans for further enhancements to the canal are already under consideration to accommodate larger ships and improve efficiency once normal traffic resumes.

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Tragedy Strikes as Submarine Sinks Near Egypt's Hurghada, Six Dead

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Fatal Submarine Accident Claims Lives of Tourists in Egypt's Red Sea

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Ancient Tomb Discovery Sheds Light on Egypt's Military Heritage

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