Conflict in the Middle East Pushes Egypt to Economic ‘Near-Emergency’
President Abdel Fattah al-Sisi has warned that Egypt is in an economic “state of near-emergency” due to the escalating conflict in the Middle East. The war, involving strikes on Gulf allies and disrupted trade through the Strait of Hormuz, threatens Egypt’s vital Suez Canal revenue and has exacerbated inflation in the import-dependent nation.
The Egyptian pound fell to an eight-month low against the dollar on Thursday, continuing a steep decline that has seen the currency lose two-thirds of its value since 2022. Addressing price concerns, Sisi cautioned that traders engaging in profiteering could face military tribunals. While Egypt is attempting mediation efforts, Iran has stated it is not seeking a ceasefire.
