Sisi: Suez Canal Is Losing $800 Million Monthly Due to Regional Instability

Egyptian President Abdel Fattah Al-Sisi announced on Monday, 17 March, that the Suez Canal is losing approximately USD 800 million (EGP 40.37 billion) in revenue each month due to ongoing regional tensions. 

This statement came during the annual iftar banquet hosted by the armed forces in Cairo.

The Iftar was attended by Speaker of the House of Representatives Hanafi Gebaly, Prime Minister Mustafa Madbouly, Minister of Defense General Abdel Megeed Saqr, Grand Imam of Al-Azhar Dr. Ahmed El-Tayeb, and Pope Tawadros II, alongside other senior officials and students from the Egyptian Military Academy.

The disruptions stem from attacks on vessels in the Red Sea by Yemen’s Houthi movement, which has been targeting ships since November 2023 in response to Israel’s war on Gaza.

These attacks have forced many shipping companies to avoid the Suez Canal, rerouting vessels around Africa via the Cape of Good Hope, leading to increased costs and delays in global trade.

While the Egyptian presidency’s statement did not directly mention the Houthis, Sisi had previously said in December 2024 that the canal’s losses could amount to USD 7 billion (EGP 353.39 billion). 

The impact on the Suez Canal comes amid broader geopolitical instability in the region. In September 2024, Sisi revealed that canal revenues had already declined by 50-60 percent that year, citing rising tensions following the outbreak of Israel’s war on Gaza on 7 October. 

The escalation of conflict, including Israeli airstrikes in Lebanon and the assassination of key Hezbollah figures has further destabilized the region, adding pressure to Egypt’s economy.

The Suez Canal remains a vital source of hard currency for Egypt. This man-made waterway, connecting the Mediterranean to the Red Sea, provides the shortest maritime route between Asia and Europe and the fastest passage from the Atlantic to the Indian Ocean. 

Under normal conditions, it facilitates around 12 percent of global trade on an annual basis, making it one of the world’s most important shipping routes.