Egypt is losing approximately $800 million in monthly revenue from the Suez Canal due to escalating instability in the region, President Abdel Fattah El-Sisi said on Monday, as maritime disruptions continue to impact one of the world’s most vital shipping lanes.
Speaking during a televised interview aired by local broadcaster eXtra News, El-Sisi attributed the sharp decline in revenues to the deteriorating security situation in the Red Sea, where ongoing hostilities have forced many commercial vessels to reroute.
“The state suffers monthly losses of around $800 million due to the situation in the region,” El-Sisi said, without elaborating on when he expected the disruptions to ease.
Tensions have surged in recent weeks following intensified U.S. airstrikes on Houthi-controlled areas in Yemen, which reportedly killed over 50 people and wounded dozens. In retaliation, the Houthis launched missile and drone attacks on U.S. warships in the Red Sea, including the aircraft carrier USS Harry S. Truman.
On Sunday, Houthi leader Abdul Malik al-Houthi declared that U.S. and Israeli ships would be barred from navigating the Red Sea and the Arabian Sea, further escalating concerns over shipping security.
The Suez Canal is a critical global trade route, handling about 12% of global maritime traffic. Prolonged instability in the Red Sea has prompted several major shipping lines to divert vessels around the Cape of Good Hope, significantly increasing travel time and costs.
El-Sisi previously stated that Egypt incurred losses of roughly $7 billion in 2024 due to the ongoing security crisis in the Red Sea, with Suez Canal revenues falling by more than 60% compared to 2023.
The downturn in canal income poses additional economic challenges for Egypt, which relies heavily on foreign currency revenues from the waterway to support its balance of payments.
