Egypt Faces Energy Crisis: Shops Close Early, WFH Increased Due to Iran War

Shops, restaurants, and cafes in Egypt have been asked to close early as part of a series of temporary policies to address the rise in energy prices caused by the Iran war. Retail businesses and eateries must close at 9 PM every day for the next month. The anticipatory measures introduced by the Egyptian government also include dimming street lights and roadside advertisements. According to BBC, Egypt is severely affected by the Middle East conflict and the effective blockade of the Strait of Hormuz, the main shipping route for oil and liquefied natural gas. Global oil prices have skyrocketed since supplies through that waterway have almost completely halted, with concerns about a domino effect on the prices of food, medicines, and other goods if the issue is not resolved. Although Egypt is not involved in the war, its dependence on fuel imports has made it vulnerable to supply shocks. That figure is equivalent to Rp 42.47 trillion assuming an exchange rate of Rp 16,990 per US dollar. The government states that hotels and tourist sites will be exempt from the energy-saving measures. The tourism sector is estimated to contribute around one-tenth of Egypt’s economy. Nevertheless, several hotels in Cairo, including Marriott and Cosmopolitan, say they have purchased generators to prepare for potential power outages and will keep their restaurants open for guests regardless of other closing times. Since Iran began threatening to attack ships carrying goods through the Strait of Hormuz, most international shipments through that narrow route have stopped. Normally, around 20 percent of the world’s oil and gas supply flows through this route. US President Donald Trump has repeatedly expressed his disappointment that allied countries are unwilling to help escort ships through the waterway.