- Houthi attacks at the end of 2023 disrupted Suez Canal business, leading to a significant financial impact.
- 2024 Suez Canal earnings fell by around $6 billion due to Houthi attacks, impacting Egypt's national income.
- Recent drone attacks have damaged Saudi Arabia's east-west pipeline to Yanbu, which could put 4% of global supply at risk.
- Saudi Arabia and Egypt are discussing Red Sea security in light of the ongoing threats to maritime traffic.
- The Suez Canal Authority reported that revenues for the 2025-2026 fiscal year rose by 23% to $4.67 billion (€4.5 billion), though the situation remains problematic compared to 2023.
- Think tanks warn of the dangers of dual choke points in the Persian Gulf and Red Sea, as neither route can be an independent alternative.
- Egypt's options are limited due to its weak military capabilities and largely symbolic participation in the Saudi-led coalition.
The Houthis' threats to disrupt Suez Canal traffic are raising alarms in Egypt, where earnings from the canal fell by $6 billion in 2024, down from $9-10 billion annually before the crisis.24
The situation is exacerbated by recent Houthi attacks that have already impacted operations at the canal. Stephan Roll, a senior fellow at the German Institute for International and Security Affairs, noted, "The Houthis could actually interrupt, or at least significantly disturb, the connection between Asia and Europe."1
Despite the threats, maritime traffic through the Bab el-Mandeb Strait has not significantly decreased, with reports indicating that 24 ships47 ships in July to 21 ships on a recent Monday.
Egypt's military capabilities to respond are limited, as highlighted by Steffen Krüger of the Konrad Adenauer Foundation, who stated, "Egypt's military capabilities are very limited." The Houthis have also expressed a willingness to negotiate shipping security directly with Cairo, although the International Chamber of Shipping has denied any such request.
As Saudi Arabia and Egypt discuss security measures in the Red Sea, the potential for further disruptions looms large, threatening not only regional stability but also global trade routes.6
“Egypt's Suez Canal earnings fell by around $6 billion in 2024 due to Houthi attacks, though revenues rose 23% to $4.67 billion in the 2025-2026 fiscal year. Egypt's military options are limited, and its coalition participation is largely symbolic, pushing it toward diplomacy.”
dw.com
