Kuwait City, Kuwait – On Sunday, November 24, 2024, Egyptian Foreign Minister Badr Abdel Atti stated that Egypt could be the most affected by the current escalation in the Red Sea, caused by attacks from the Iran-aligned Houthi militia on commercial shipping vessels.

During a press conference in Kuwait, Abdel Atti emphasized that increased militarization in the Red Sea severely impacts global trade and the Egyptian economy, especially as revenues from the Suez Canal have significantly declined due to the "unacceptable" escalation in the region.

According to Reuters, he discussed the "catastrophic" situation in the Red Sea with his Kuwaiti counterpart, highlighting the current tensions that are disrupting international maritime traffic.

"If there is a genuine intention to prevent escalation, the root causes of the problem must be addressed, particularly the Israeli aggression against Gaza and Lebanon, to eliminate any pretext for any party," he stated.

Abdel Atti stressed that stability is crucial and can only be achieved by resolving the fundamental issues and halting the ongoing aggression.

Last Wednesday, the International Monetary Fund (IMF) reported that tensions in the Red Sea had led to a 70% drop in Suez Canal revenues, a primary source of foreign currency for Egypt. This announcement followed an IMF delegation's visit to Egypt from November 6 to November 20, during which they conducted the fourth review of an economic reform program accompanied by an $8 billion loan.

The IMF noted that ongoing geopolitical tensions in the region continue to pose challenges for economic forecasts, including those for Egypt. The conflicts in Gaza and Israel, alongside disruptions in Red Sea trade, have negatively impacted morale and led to substantial decreases in Suez Canal revenues, which are a significant source of foreign currency for Egypt.

Since October, the Houthi militia has launched missile and drone attacks on commercial vessels in the Red Sea and the Arabian Sea, prompting many ships to avoid the Suez Canal in favor of the longer and more expensive route around the Cape of Good Hope.