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The Red Sea Crisis: How Attacks Cost Egypt $7 Billion in Suez Canal Revenue and Shook Global Trade
The Suez Canal, one of the world’s most vital maritime trade routes, is facing a crisis of historic proportions. In 2024, Egypt suffered a staggering $7 billion loss in Suez Canal revenue, a sharp 60% decline compared to the previous year. This financial blow stems from escalating attacks on shipping in the Red Sea, an already volatile region plagued by geopolitical tensions and instability. The fallout from these attacks has not only impacted Egypt’s economy but also sent shockwaves through global trade, highlighting the fragility of supply chains and the interconnectedness of our world.
The Suez Canal, completed in 1869, is a 120-mile waterway connecting the Red Sea to the Mediterranean. It is the shortest maritime route between Europe and Asia, saving ships thousands of miles of travel around the southern tip of Africa. Each year, nearly 12% of global trade passes through the canal, including vital shipments of oil, liquefied natural gas, and consumer goods.
For Egypt, the canal is an economic lifeline. In 2023, it generated $9.4 billion in revenue, making it one of the country’s largest sources of foreign currency. This income is critical for a nation grappling with high inflation, currency devaluation, and a mounting debt crisis. However, the events…
