Red Sea tensions halve Suez Canal revenues amid Houthi attacks
Revenues from the transit through the Suez Canal have decreased by over 60 per cent due to a drop in the number of passing ships, particularly from Western countries. The Central Bank of Egypt attributes this decline primarily to tensions in the Red Sea. Meanwhile, the situation in the region is escalating.
The Central Bank of Egypt reported a significant decrease in revenues from transit through the Suez Canal. In the first half of the fiscal year 2024/2025, revenues amounted to approximately $1.8 billion (€1.6 billion), marking a decrease of 62.3 per cent compared to $4.8 billion (€4.2 billion) in the corresponding period of the previous year.
The primary reason for this decline is a reduction in the number of ships passing through the canal by 52.2 per cent. This situation arises from tensions in the Red Sea, where Yemeni Houthi fighters, supported by Iran, are attacking Western ships. Additionally, bombings of their positions by the air forces of the United States and Israel exacerbate the security concerns 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, between 50 and 60 ships navigate the Suez Canal, carrying cargo valued between $3 billion (€2.7 billion) and $9 billion (€8 billion). According to the World Bank, the canal accounts for about 15 per cent of global trade, underscoring its strategic importance.
Due to these threats, many shipping companies are opting for the longer route around Africa, resulting in reduced traffic through the Suez Canal. This canal, which connects the Red Sea with the Mediterranean Sea, is one of the key routes for global trade.
Tensions rise in the Middle East
Meanwhile, the Israeli air force conducted a strike on Monday evening on Houthi rebel targets in Yemen. The attacked sites included the port in Hudaydah and a concrete factory in the city of Bajil. Around 20 fighter jets participated in the operation, and 21 people were injured in the attack.
The strike was a response to Sunday's Houthi attack on Ben Gurion Airport in Tel Aviv. It was the first incident where a ballistic missile from the Yemeni group hit Israel's largest international airport. Fortunately, the missile did not cause serious damage.
Nasrudin Amer, a Houthi spokesperson, announced on social media that the "Zionist-American attacks on civilian targets" would not deter them from fighting against Israel. The group plans to intensify attacks on Israel and the shipping route through the Gulf of Aden and the Red Sea.
The Houthis, regarded by the West as a terrorist organisation, 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 the war in the Gaza Strip in October 2023, the Houthis have conducted over 100 attacks on merchant ships off the coast of Yemen.
