US–Israel–Iran War Takes Toll, Egypt's Economy Nears Emergency
US–Israel–Iran War Takes Toll as Egypt’s Economy Nears Emergency
Cairo, CNBC Indonesia - Egypt is reportedly in an economy that is ‘nearly in emergency’ due to the escalation of the war between the United States and Israel against Iran. The statement was delivered directly by President Abdel Fattah al-Sisi.
Sisi warned that the regional conflict could trigger inflation and shake the economy of the world’s most populous Arab country. He said the ongoing geopolitical crisis could have a direct impact on domestic prices.
‘The current crisis may affect prices,’ Sisi said at an event at the military academy on Thursday, 5 March 2026, as quoted by AFP. He warned traders not to engage in price manipulation.
‘Anyone engaging in price manipulation can be tried in a military court,’ he added, as quoted in a statement from his spokesman.
Although Egypt has not yet been directly affected physically by the conflict, the turmoil has weighed on the country’s economy and financial markets.
At Thursday’s close, the Egyptian pound weakened to its lowest level in eight months against the US dollar, trading around 50.2 pounds per dollar amid reports of short-term capital outflows.
Egypt’s economy is known to be heavily dependent on imports, so exchange-rate fluctuations have a large impact on the prices of goods. Since 2022, the country’s currency has lost around two-thirds of its value against the US dollar.
Additionally, the government is wary of potential disruptions to global trade routes. Previously, Sisi warned that the conflict could affect activity in the Suez Canal, one of Egypt’s main sources of foreign exchange besides energy shipping through the Hormuz Strait.
Several global shipping companies have been reported to divert their routes away from the region by sailing around the Cape of Good Hope in South Africa, which could raise global logistics costs.
Amid rising tensions, Sisi said Cairo continues to push for diplomacy to halt the conflict. ‘Egypt is making sincere and earnest mediation efforts to stop the war, because its continuation would cause enormous losses,’ Sisi said.
Egypt has previously hosted nuclear talks between Iran and the International Atomic Energy Agency and acted as a guarantor of the Gaza ceasefire brokered by the US between Israel and Hamas.
However, on the same day, Iranian Foreign Minister Abbas Araghchi stressed that Tehran is not seeking a ceasefire path at present. Araghchi said ‘Iran does not seek a ceasefire or negotiations with the United States.’
The statement indicates the conflict may still continue and increase the risk of further economic pressure on countries in the region, including Egypt.