Egypt: We are losing $800 million a month in Suez Canal revenue due to the situation in the region.

Egyptian President Abdel Fattah el-Sisi announced Monday evening that his country "is incurring monthly losses estimated at approximately $800 million in Suez Canal revenue due to the situation in the region," noting that "the economic situation has begun to improve" in Egypt.

This came in a speech delivered by Sisi at an annual iftar banquet hosted by the Egyptian Armed Forces, attended by a large number of the country's officials, according to a statement from the Egyptian presidency.

The Egyptian president pointed to the "difficult circumstances" facing the world and the Middle East, explaining that Egypt has been able to move "steadily and carefully despite the challenges it has faced over the past fifteen years, including the economic crises that have also affected the world."

He pointed out that "the state is incurring monthly losses estimated at approximately $800 million in Suez Canal revenues due to the situation in the region."

The Egyptian president affirmed that "the Egyptian economy is witnessing positive indicators," noting that "the International Monetary Fund recently approved the disbursement of a new tranche to Egypt."

On Monday evening, Egyptian Finance Minister Ahmed Kouchouk announced that the Executive Board of the International Monetary Fund had approved the fourth review of Egypt's financing program, estimated at $1.2 billion out of a total accompanying loan of $8 billion.

Egypt completed the first review with the IMF, receiving a tranche worth $347 million, followed by the second and third tranches worth $820 million each, bringing Egypt's total to $1.98 billion by the end of the third review.

In November 2022, Egypt agreed with the IMF on an economic reform program accompanied by a $3 billion loan. The loan was later expanded to $8 billion in March 2024, due to the impact on Egypt's public finances from the Gaza war.

Sisi praised "the role of the Egyptian people, their cohesion, and the strength of state institutions, especially the armed forces and the civil police, as they represent the fundamental pillar of the state during these exceptional times."

The Egyptian president sent a "message of reassurance" to the Egyptian people, stating that he was aware of "the anxiety Egyptians are experiencing due to current events."

He pointed out that the economic situation has begun to improve, as have the work of state institutions and the efforts of the people.

He stressed the importance of intensifying efforts and moving forward to develop Egyptian society through well-thought-out steps.

In late December 2024, the Egyptian presidency said in a statement that the Suez Canal's revenues had lost $7 billion in 2024 due to developments in the Red Sea and the Bab el-Mandeb Strait, which negatively impacted navigation through the canal and the sustainability of global trade. This statement came after a meeting between President Sisi and Suez Canal Authority Chairman Osama Rabie.

While the statement did not mention the Suez Canal's total revenues for 2024, the figure for 2023 reached $10.25 billion, according to official data.

Tensions in the Red Sea have escalated significantly since the Houthis directly targeted a US ship on January 9, 2024. This followed a previous campaign of attacks targeting cargo ships owned or operated by Israeli companies, or those transporting goods to and from Israel, in a show of solidarity with the Gaza Strip.

On March 1, 2025, the first phase of the Gaza agreement ended, and days later, Israel re-closed the crossings to prevent the entry of humanitarian aid into the Palestinian Strip.

After Tel Aviv violated the agreement and closed the crossings again to prevent humanitarian aid from entering the Gaza Strip, at the beginning of March, coinciding with the holy month of Ramadan, the Houthi group announced the resumption of its operations against Israeli ships to pressure them to break the Gaza blockade.

On Saturday, US President Donald Trump announced that he had ordered his country's military to launch a "major attack" against the Houthis in Yemen.

This came after the group announced the resumption of its operations against Israeli ships to pressure Israel to break the Gaza blockade. This followed Tel Aviv's violation of the ceasefire agreement in the Gaza Strip and its renewed closure of the crossings to prevent the entry of humanitarian aid.

Source: Anadolu Agency