President Abdel Fattah el‑Sisi has warned that escalating conflict in the Middle East is pushing Egypt toward a serious economic strain, raising fears of rising prices in the heavily import-dependent nation. Speaking at an event at a military academy on Thursday, Sisi said the war involving the United States, Israel and Iran could have “repercussions on prices” in Egypt as global trade routes and regional stability come under pressure. He warned traders against price manipulation, saying those caught gouging prices could face trial in military courts.
The conflict has already disrupted shipping in the Strait of Hormuz, a critical route for global oil and trade after strikes targeted Gulf states allied with Egypt. Analysts say prolonged instability in the area could also affect traffic through the Suez Canal, one of Egypt’s most important sources of foreign currency and a key artery for global shipping. Economic pressure is already visible in currency markets. The Egyptian pound fell to an eight-month low against the US dollar on Thursday. Since early 2022, the currency has lost roughly two-thirds of its value amid a prolonged economic crisis, high inflation and repeated currency devaluations.
Egypt relies heavily on imports for food, fuel and other essentials, leaving it vulnerable to global supply disruptions and higher shipping costs. Any sustained interruption to shipping lanes or canal traffic could further strain the country’s foreign reserves and increase inflation. Sisi said Egypt is working diplomatically to help de-escalate the conflict, but prospects for negotiations remain uncertain. Officials in Iran have stated that they are not currently seeking a ceasefire or talks with the United States.
