Egypt's billion-dollar nightmare: The Houthi plan to close Cairo's main artery

The article analyzes the Houthi threat to Red Sea shipping routes and the severe economic consequences for Egypt. Prof. Ahmed Osal explains that blocking the Bab el-Mandeb strait would lead to a de facto closure of the Suez Canal, potentially costing Egypt $7–8 billion annually. However, he assesses that the Houthis will not rush to escalate at this stage.

The article analyzes the growing threat from the Houthis in Yemen to Red Sea shipping routes, focusing on the severe economic consequences for Egypt. Prof. Ahmed Osal, cited in the article, warns that a Houthi blockade of the Bab el-Mandeb strait would lead to a de facto closure of the Suez Canal, which serves as Cairo's main economic artery. According to him, Egypt could lose annual revenues of $7–8 billion if the Red Sea route is closed. However, Osal assesses that at this stage the Houthis will not rush to broadly disrupt ship traffic, and may prefer to avoid immediate escalation that would lead to international intervention. The article notes that Egypt has already lost about $10 billion due to damage to the Suez Canal, and presents the canal as the country's most important geopolitical asset.