Watan-A UN statement has revealed the impact of Houthi attacks in the Red Sea on the regime of Abdel Fattah el-Sisi in Egypt, exacerbating the country’s economic crisis due to his failed individual policies, particularly in the Suez Canal, where trade volume has decreased by 42% in the past two months.
For weeks, the Houthis have targeted shipping vessels associated with Israel in the Red Sea with missiles and drones, negatively affecting shipping, trade, and global supply chains. They claim this is a step to support Gaza, which is facing a brutal Israeli war.
The United Nations Conference on Trade and Development (UNCTAD) stated that trade volume through the Suez Canal has dropped by 42% in the last two months due to Houthi attacks on ships alleged to support the occupation, prompting ship owners to change their routes.
The Houthi attacks and their role in trade disruptions
UN official Jan Hofmann expressed deep concern about the attacks on maritime shipping in the Red Sea, which increase disruptions in trade linked to political geography and climate change.
Hofmann emphasized that prolonged disruptions in major trade routes could impact global supply chains. Some global companies have taken alternative measures to continue shipping their goods and fulfill contracts, while others have suspended operations to protect their crews and cargo despite potential losses.
UNCTAD highlighted that prolonged disruptions in major trade routes could impact global supply chains.
Warning of Global Inflation
The UN organization expressed concern about global food prices and warned that such disruptions could lead to delays in product delivery, cost increases, and the risk of inflation.
Crossing the Black Sea was significantly disrupted after Russian military operations in Ukraine, leading to a global increase in food prices in the months that followed.
With increasing drought, water levels in the Panama Canal significantly dropped, reducing traffic flow. The weekly count of container ship crossings through the Suez Canal decreased by 67% on a yearly basis, according to AFP.
It is worth noting that the United States and Britain conducted airstrikes on Houthi military targets. The Houthis have declared their continued attack on any ships heading to Israel or supporting it, in solidarity with Palestine and to pressure for a halt to the war in Gaza.
Bloomberg previously reported that Egypt is grappling with a crucial question of how to leverage the crisis of the aggression on Gaza to address its challenging economic problems. The report stated that the war between Israel and Hamas brought Egypt back into focus as a major regional player, providing Western support as it tries to emerge from its chronic economic crisis.