Red Sea crisis deepens as Egypt faces economic fallout

Egypt is facing the most severe consequences of the ongoing escalation in the Red Sea, according to Foreign Minister Badr Abdelatty.

Abdelatty made the statement during a press conference with Russian Foreign Minister Sergey Lavrov in Moscow on Monday.

He highlighted the financial strain on Egypt, attributing it to decreased revenue from the Suez Canal amid current regional tensions.

“The ongoing escalation unjustly affects international navigation in the Red Sea,” Abdelatty said.

“Egypt is hit hardest, suffering from reduced Suez Canal income due to these tensions.”

The Suez Canal, a crucial source of foreign currency for Egypt, saw its revenue drop to $7.2 billion in the fiscal year 2023/24, down from $9.4 billion the previous year.

Abdelatty emphasized that halting Israel’s war on Gaza is essential to alleviating the situation.

Tensions have risen in the Red Sea and the Gulf of Aden due to attacks by Yemen’s Houthi group on vessels linked to Israel.

The conflict in Gaza, which has resulted in over 41,200 deaths, predominantly among women and children, remains a significant concern.

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