Red Sea Tensions Drive Up Shipping Costs

Houthi attacks on international ships in the Red Sea have significantly impacted Egypt's economy, leading to a 40% decrease in Suez Canal income and a 30% drop in ship traffic. Egypt has responded by increasing transit fees and faces a predicted GDP shrink and rising inflation. Despite pressure to participate in military operations against the Houthis, Egypt has declined, citing domestic and regional considerations, and is unlikely to face significant repercussions from the US for its stance.