Houthi Strikes Cause Suez Canal Revenues To Fall By 60%

The Suez Canal, one of the most important waterways in the world, is facing serious trouble. Recently, its revenues have dropped by a massive 60%, and nearly half of the ships that usually pass through this crucial route are now avoiding it. But why is this happening, and what does it mean for global trade?

The Houthi Attacks and the Conflict in Gaza

The major reason behind this decline is the escalating conflict in the Middle East. Yemeni fighters, known as the "Ansar Allah" movement, or the Houthis, have been targeting ships they believe are linked to Israel or are traveling to or from the country. This is their way of retaliating against what they see as Israeli military actions in Gaza, which has been a hotspot of violence since October 2023.

These attacks have made shipping companies extremely nervous. Many of them are now steering clear of the Red Sea, which is a key area for reaching the Suez Canal. The uncertainty and danger in the region have caused a big drop in...

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