Amid the war between Israel and Iran, Iran’s parliament has expressed support for closing the Strait of Hormuz, citing a senior lawmaker on 23 June. However, the final decision on whether to shut the strategic waterway rests with Iran’s Supreme National Security Council, igniting fear among neighbouring countries. According to Karim Adel, Egyptian economic expert and head of the Justice Center for Economic and Strategic Studies, international trade routes and major maritime passages are often disrupted by disturbances in critical straits such as Hormuz and Bab el-Mandeb. He noted that such disruptions present both challenges and opportunities for the Suez Canal. The Egyptian economist explained that rising global trade tensions, whether military or economic, could lead to a decline in foreign direct investment (FDI) flows into emerging markets, including Egypt. This, he said, may result in a slowdown in global trade volumes, a drop in Suez Canal revenues, and a depreciation of the Egyptian pound against the U.S. dollar. A potential closure of the narrow waterway could send shockwaves through the global economy, not just Egypt’s. The U.S. Energy Information Administration estimates that nearly 20 million barrels of crude oil,…
