The war known as “Iron Swords” is a unique conflict that has an impact on countries that are not directly involved in the fighting. Egypt is particularly affected by this war, which comes at a terrible time for the country. The crisis caused by the Houthis in the Red Sea has resulted in serious damage to the Suez Canal. This has had significant financial implications for Egypt, with traffic dropping by 64% in the first two weeks of the year compared to last year. As a result, Egypt brought in about 47% less revenue compared to the previous year.
The maritime analysis company revealed that traffic around the Cape of Good Hope increased by 168%, from 77 to 206 ships per day. In response to this crisis, Egypt has asked the Houthis to focus only on attacks against Israel. However, this did not stop them from targeting nearly all of the shipping giants, causing even more damage to the Suez Canal.
Egypt’s debt crisis has been growing over recent years and now stands at more than 160 billion dollars. This has led credit rating companies to downgrade Egypt’s credit image and classify it as high risk. In order to address this crisis, Egypt is holding discussions with the International Monetary Fund to release additional aid funds. However, these talks have been difficult after last year’s aid package was stopped because Egypt did not carry out necessary reform measures.