Egyptian President Abdel Fattah al-Sisi said on Monday that the Suez Canal is losing approximately $800 million in monthly revenue due to ongoing regional instability, as attacks by Yemen’s Houthis continue to disrupt shipping in the Red Sea.
The Iran-backed Houthi group has been targeting vessels in the Red Sea since November 2023, citing support for Palestinians in Gaza amid the war with Israel. Their attacks have forced ships to bypass the Suez Canal and reroute around Africa, driving up shipping costs and delaying global trade.
Although the Egyptian presidency’s statement did not explicitly mention the Houthis, Sisi previously estimated in December that the disruptions would result in a $7 billion decline in Suez Canal revenue for 2024.
Tensions in the region escalated further after the Houthis vowed to resume strikes on U.S. ships in response to a series of U.S. airstrikes on Yemen. The strikes, which took place on Saturday, killed at least 53 people and marked the largest U.S. military operation in the Middle East since President Donald Trump returned to office in January.
Additionally, the Houthis recently warned they would restart attacks on Israeli vessels passing through the Red Sea unless Israel lifts its blockade on aid entering Gaza.
