Suez canal revenue plunges 62% amid Red Sea tensions
Revenues from transit through the Suez Canal have decreased by over 60 percent due to a drop in the number of transiting ships, especially those from Western countries. The Central Bank of Egypt points to tensions in the Red Sea as the main cause. Meanwhile, the situation in the region continues to escalate.
The Central Bank of Egypt reported a significant drop in revenues from transit through the Suez Canal. In the first half of the 2024/2025 fiscal year, revenues amounted to approximately $1.8 billion, a decrease of 62.3 percent compared to $4.8 billion in the same period of the previous year.
The main reason for this decline is a 52.2 percent reduction in the number of ships passing through the canal. This situation is a result of tensions in the Red Sea, where Yemeni Houthi militants, supported by Iran, attack Western ships. Moreover, bombings of their positions by the United States and Israeli air forces contribute to the lack of security in the region.
The Houthis are attacking because they demand an end to the war in the Gaza Strip, where Israel has launched a new offensive.
Daily, 50 to 60 ships pass through the Suez Canal, carrying cargo worth between $3 billion and $9 billion. According to the World Bank, the canal accounts for about 15 percent of global trade, highlighting its strategic importance.
Due to the threats, many shipping companies are choosing the longer route around Africa, reducing traffic through the Suez Canal. This canal, at a length of 120 miles, connects the Red Sea with the Mediterranean Sea and is one of the key routes for global trade.
Tension rises in the Middle East
Meanwhile, Israeli air forces conducted an airstrike on Houthi rebel targets in Yemen on Monday evening. Among the attacked locations were the port in Hudaydah and a concrete factory in the city of Bajil. Approximately 20 fighters participated in the operation, and 21 people were injured in the attack.
The airstrike was in response to a Houthi attack on Ben Gurion Airport in Tel Aviv on Sunday. This was the first instance when a ballistic missile from the Yemeni group hit Israel's largest international airport. The missile did not cause significant damage.
Nasrudin Amer, a Houthi spokesperson, announced on social media that "Zionist-American attacks on civilian targets" would not deter them from fighting Israel. The group plans to intensify attacks on Israel as well as on the shipping routes through the Gulf of Aden and the Red Sea.
The Houthis, recognized by the West as a terrorist organization, are part of the so-called axis of resistance, supported by Iran. This network also includes the Palestinian Hamas and the Lebanese Hezbollah. Since the outbreak of war in the Gaza Strip in October 2023, the Houthis have conducted over 100 attacks on merchant ships off the coast of Yemen.
