Iran war could disrupt Suez Canal trade, Egypt’s Sisi warns
Egypt warns Middle East conflict threatens Suez Canal, disrupts global shipping, as major companies halt transit through key waterways.
Egyptian – (Web Desk) – Egyptian President Abdel Fattah al-Sisi has warned that a prolonged conflict in the Middle East could pose serious risks to the Suez Canal, a crucial artery for Egypt’s economy.
This week, three major container shipping companies paused transit through key regional waterways as tensions escalated following US-Israeli strikes on Iran and Tehran’s retaliatory actions, disrupting global shipping routes.
Sisi, speaking on state television late Sunday, said, “We are closely monitoring the ongoing war because of its effects on the Strait of Hormuz and navigation through the Suez Canal.”
He added that Egypt has faced similar challenges over the past two years, leading to significant financial losses.
MSC, Maersk and CMA CGM stopped operations in the Strait of Hormuz in the Gulf, next to Iran, and the Bab el-Mandeb Strait, which connects the Indian Ocean to the Red Sea and the Suez Canal.
Many ships are now re-routing around the Cape of Good Hope off the tip of southern Africa, bypassing the region’s vital waterways.
Sisi previously said the canal’s revenues plunged 60 percent in 2024, a loss of $7 billion.
Traffic through the waterway had begun to recover in recent months from Houthi attacks on commercial vessels in the Red Sea following the October 7, 2023 attack on Israel and the ensuing war in Gaza.
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The Strait of Hormuz is one of the world’s most strategic waterways, carrying nearly a quarter of global seaborne oil and a significant volume of cargo to and from Gulf ports.
The Suez Canal is the region’s other major artery, linking the Mediterranean to the Red Sea, and is a crucial shortcut between Europe and Asia.
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