US-Israel vs Iran escalation: Egypt warns of threat to Suez Canal

Jakarta, CNBC Indonesia – Egyptian President Abdel Fattah al-Sisi has warned that escalation of the conflict between the United States, Israel, and Iran could threaten the Suez Canal, a vital maritime trade route linking Europe and Asia.

In a televised address on Sunday evening local time, al-Sisi described tensions in the Strait of Hormuz and the Red Sea as a serious risk to international navigation and commerce.

“We are deeply vigilant regarding the continuation of warfare given developments in the Strait of Hormuz and their impact on navigation in the Suez Canal,” al-Sisi said, according to AFP on Tuesday, 3 March 2026.

He added that Egypt has suffered significant financial losses due to disruptions to this route over the past two years.

Al-Sisi previously stated that Suez Canal revenues fell 60% in 2024, with losses of approximately $7 billion or around 117.9 trillion rupiah. “This decline places significant pressure on Egypt’s economy, which depends heavily on the canal,” al-Sisi said.

Currently, several major global shipping companies, including Maersk, Hapag-Lloyd, CMA CGM, and MSC, have suspended operations in the Strait of Hormuz and the Strait of Bab el-Mandab to avoid the risk of military attacks. Many vessels now divert their route through the Cape of Good Hope in South Africa, which increases transit time and logistical costs.

The Strait of Hormuz is a strategic route for global oil exports, whilst the Suez Canal serves as an important shortcut between Europe and Asia. Continued disruption to both routes is expected to increase uncertainty in energy markets and international trade.

Shipping disruptions began following Houthi attacks in the Red Sea in October 2023. Although conditions improved somewhat in recent months, the latest escalation presents new risks to this vital route.