The Suez Canal, a vital artery for global trade that links the Mediterranean and Red seas, has been a significant source of foreign currency for Egypt, with approximately 10% of global trade passing through it.

Opened in 1869 and expanded in 2015 under President Abdel Fattah el-Sissi, the canal facilitates the transit of large vessels carrying oil, natural gas, and cargo.

Between November 2023 and January 2024, the Houthis launched attacks on over 100 merchant vessels, resulting in the sinking of two ships and the deaths of four sailors.

Despite these challenges, Osama Rabie, chief of the Suez Canal Authority, affirmed that Egypt continues to provide uninterrupted navigational and maritime services in the waterway.

However, Egypt's revenue from the canal saw a dramatic decline in 2024, plummeting by nearly two-thirds from a record $10.25 billion generated in 2023.

This sharp drop in revenue can be attributed to regional tensions and ongoing conflicts in the Middle East, particularly the threats posed by Yemen's Iran-backed Houthi rebels.

In 2024, only 13,213 ships transited through the canal, marking a 50% decrease from over 26,000 ships in the previous year.

These attacks have disrupted canal traffic, particularly targeting vessels bound for Israel, and the Houthis have threatened to continue their assaults as long as conflicts persist.