Red Sea Disruptions Cost Egypt $7 Billion in Suez Revenues

By Tarek El-Tablawy and Abdel Latif Wahba

December 26, 2024 at 9:43AM EST

The Maersk Sentosa container ship sails southbound to exit the Suez Canal in Suez, Egypt, on Thursday, Dec. 21, 2023. A steep decline in the number of tankers entering a vital Red Sea conduit suggests that attacks on ships in the area are further disrupting a key artery of global trade. (Stringer/Bloomberg)

(Bloomberg) -- Red Sea disruptions — a consequence of Houthi maritime attacks — have cost Egypt at least $7 billion in Suez Canal revenue this year, the country’s presidency said in a statement Thursday.

Revenue from the vital international waterway is down over 60%, the statement said, without providing total figures.

The Houthi attacks have hit Egypt hard since they began in late 2023. The Yemen-based militant group hasn’t targeted Egyptian assets, but it has effectively closed the southern Red Sea and parts of the Gulf of Aden to most Western shipping firms, stopping them from using the Suez Canal to move goods between Europe and Asia.

The Suez Canal is a vital source of foreign exchange for the $380 billion Egyptian economy, whose currency slid to a record low in the past month.

As well as assaulting ships, the Houthis are firing drones and missiles on Israel. They say they won’t stop until Israel agrees to a ceasefire with Hamas in Gaza.