Suez Canal Authority Chairman Osama Rabie stated on Wednesday that the Red Sea crisis has not resulted in a sustainable route to replace the canal. He noted, "There were positive indicators for the return of stability in the region."
Since November 2023, Iran-backed Houthi militants have targeted vessels in the Red Sea, disrupting global shipping lanes. This has led to ships avoiding the Suez Canal, opting instead to reroute around Africa, which has increased insurance costs.
In December, Egyptian President Abdel Fattah al-Sisi commented on the financial impact, indicating that the disruption cost Egypt approximately $7 billion in Suez Canal revenue for 2024. This represents a decline of over 60% from the previous year's revenue, according to Sisi.
Source: Reuters