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Egypt’s Suez Canal Revenue Rises 20.7% in 2021/22 to $7 Bln

A shipping container of the China Ocean Shipping Company (COSCO) moves through the Suez Canal in Suez, Egypt February 15, 2022. Picture taken February 15, 2022. (Reuters)
A shipping container of the China Ocean Shipping Company (COSCO) moves through the Suez Canal in Suez, Egypt February 15, 2022. Picture taken February 15, 2022. (Reuters)
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Egypt’s Suez Canal Revenue Rises 20.7% in 2021/22 to $7 Bln

A shipping container of the China Ocean Shipping Company (COSCO) moves through the Suez Canal in Suez, Egypt February 15, 2022. Picture taken February 15, 2022. (Reuters)
A shipping container of the China Ocean Shipping Company (COSCO) moves through the Suez Canal in Suez, Egypt February 15, 2022. Picture taken February 15, 2022. (Reuters)

Egypt's Suez Canal Authority announced Monday an all-time revenue record, earning $7 billion during the last fiscal year following a series of toll hikes for vessels transiting the vital waterway.

Between July 2021 and June 2022 -- Egypt's fiscal year -- some 1.32 billion tons of cargo were shipped through the canal, Suez Canal Authority (SCA) chief Osama Rabie said.

The income is over a fifth higher than the previous fiscal year's $5.8 billion in transit fees, and the highest figure ever recorded.

"Global crises have proven the importance of the Suez Canal to ensuring the sustainability of global supply chains," Rabie said Monday.

Connecting the Red Sea and the Mediterranean, the canal accounts for roughly 10 percent of global maritime trade.

It is also a source of much-needed foreign currency for Egypt, which is battling crippling inflation and a currency devaluation triggered by Russia's invasion of Ukraine.

The SCA has hiked passage tolls for transiting vessels, including fuel tankers, twice this year.

In April, the waterway recorded its highest-ever monthly revenue of $629 million, despite the rise in oil prices due to Russia's invasion of Ukraine.

As Egypt reels under mounting economic pressures from the war, foreign currency reserves fell $5.5 billion between March and May to stand at $35.5 billion.

Soaring world commodity prices helped push Egyptian inflation to a three-year high of 15.3 percent in June, according to official figures.

Cairo has been rushing to mitigate the economic fallout, requesting a new loan from the International Monetary Fund and rallying billions of dollars' worth of investment from Saudi Arabia and Qatar.

Last week, Egypt announced it is set to receive $500 million from the World Bank.

Earlier this year, the SCA reported the canal's highest annual revenue for a calendar year, netting $6.3 billion dollars in 2021, despite the coronavirus pandemic and a six-day blockage by giant cargo ship the Ever Given.

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ECB Set to Hold Rates Steady with Eye on Iran Crisis

19 March 2026, Hesse, Frankfurt Main: A sign reading "European Central Bank - Eurosystem" stands in front of the European Central Bank (ECB) in Frankfurt. (dpa)
19 March 2026, Hesse, Frankfurt Main: A sign reading "European Central Bank - Eurosystem" stands in front of the European Central Bank (ECB) in Frankfurt. (dpa)
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ECB Set to Hold Rates Steady with Eye on Iran Crisis

19 March 2026, Hesse, Frankfurt Main: A sign reading "European Central Bank - Eurosystem" stands in front of the European Central Bank (ECB) in Frankfurt. (dpa)
19 March 2026, Hesse, Frankfurt Main: A sign reading "European Central Bank - Eurosystem" stands in front of the European Central Bank (ECB) in Frankfurt. (dpa)

The European Central Bank is expected to hold interest rates steady again this week as it waits to see if the inflation spike triggered by the Middle East war will prove temporary or begin to weigh on growth.

Markets ramped up their bets on a rate hike after the US-Israeli war on Iran sparked a global energy shock, which is already pushing up eurozone consumer prices.

Inflation in the 21-nation single currency area jumped to 2.6 percent in March, above the ECB's two-percent target, and the bank has warned it could surge far higher in a worst-case scenario.

ING economist Carsten Brzeski said the ECB's mantra before the war -- that it was in a "good place" on rates -- was "no more".

"The bank is back in crisis mode, shifting its focus from longer-term projections to actual developments and back to a 'driving at sight' approach," he said.

Still, economists expect the central bank not to make any moves at its meeting Thursday and keep its benchmark deposit rate at two percent, where it has been since June last year, as it waits to see how the war plays out.

US President Donald Trump has extended a ceasefire with Iran to allow more time for peace talks, and strikes have mostly ended around the region, though the Strait of Hormuz remains largely closed to tanker traffic.

Energy prices have also not risen as fast as they did in the aftermath of Russia's full-scale invasion of Ukraine in 2022, economists note, and supply chains are not facing the same disruptions.

- 'Not in a rush'-

Despite the ghosts from 2022, when the ECB was criticized for moving too slowly to raise rates as inflation surged, policymakers have signaled they are not in a hurry.

"We are not in a rush," Bank of Latvia governor Martins Kazaks, a member of the ECB's rate-setting governing council, told The Financial Times last week.

"We still have the large luxury of collecting data and forming our view," he added.

Rate increases would also weigh on the lackluster eurozone economy, whose crucial manufacturers in particular face new pressure from the energy shock.

A survey released last week showed that eurozone business activity contracted for the first time in 16 months in April due to the war's impact.

In the United States, economists have pushed back their expectations of rate cuts as the Iran energy shocks adds to inflationary pressure, and the Federal Reserve is also expected to keep rates on hold when it meets Wednesday.

- 'Double uncertainty' -

Much comes down to whether Iran and the United States can come to a lasting agreement that secures Gulf oil and gas supplies through the Strait of Hormuz, a factor over which the ECB has no control.

All eyes will be on ECB President Christine Lagarde's press conference after the meeting for clues about the outlook for rates.

But she is likely to repeat language of recent weeks that the bank is "well positioned" to deal with the fallout from the war, and refuse to be drawn on future decisions.

Speaking in Berlin last week, Lagarde said the institution was facing "double uncertainty" in that it was unclear both how long the shock would last and what its effects on the broader economy would be.

"The stop-start nature of the conflict -- war, ceasefire, peace talks, their collapse, a naval blockade, its lifting, its reinstatement -- makes it exceptionally hard to gauge the duration and depth of the consequences," she said.

Still, most economists believe the ECB will not take any action on rates just yet.

The situations now and in 2022 are "very different", Oddo BHF economist Bruno Cavalier said.

"The conditions for a surge in non-energy prices and wages are not in place," he added. "The ECB has the luxury of doing nothing."

Business

Dollar Drifts as Traders Assess Stuttering US-Iran Talks

US Dollar banknotes are seen in this illustration taken July 17, 2022. (Reuters)
US Dollar banknotes are seen in this illustration taken July 17, 2022. (Reuters)
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Dollar Drifts as Traders Assess Stuttering US-Iran Talks

US Dollar banknotes are seen in this illustration taken July 17, 2022. (Reuters)
US Dollar banknotes are seen in this illustration taken July 17, 2022. (Reuters)

The US dollar wobbled on Monday as wavering hopes of a deal to end the Middle East war left investors on edge in a week when they will also be looking for direction from central bank policymakers on the impact of the conflict.

US President Donald Trump scrapped a visit to Islamabad by his envoys over the weekend, saying Iran could reach out if it wanted to negotiate an end to the two-month war, leaving the pivotal Strait of Hormuz effectively closed.

But sentiment got a lift after Axios reported, citing sources, that Iran offered the US a new proposal through Pakistani mediators on reopening the waterway and ending the war, with nuclear negotiations postponed for a later stage.

The euro cut earlier losses to trade flat at $1.1726, while sterling bought $1.3544, also pulling back a bit. The dollar index, ‌which measures the ‌US currency against six major peers, was at 98.465, down 0.18%.

The dollar benefited ‌in ⁠March from safe-haven ⁠flows as the war erupted but shed most of those gains on hopes of a peace deal this month. It has steadied in recent days after US-Iran talks stalled.

"I have been surprised that the markets are so confident, perhaps even blase, about progress in talks and the prospect of a peace deal," said Kyle Rodda, senior financial analyst at Capital.com, noting the markets are priced for peace.

"The peace might not hold and if it doesn't the markets will have to re-price quite violently."

Although a ceasefire has paused full-scale fighting in the conflict, which began with US-Israeli strikes on Iran on February 28, no agreement has ⁠been reached to end the war, keeping shipping through the Strait of Hormuz at ‌a standstill.

The war has sent oil prices surging, fueled inflation and ‌cast a shadow over the outlook for global growth, with the closure of the strait, which normally carries a fifth of ‌global oil and gas shipments, a key risk.

Brent crude futures were up 1% at $107.20 a barrel and US West ‌Texas Intermediate at $95.80 a barrel, up 1.5% on Monday.

"While a bout of mild stagflation is baked in, the clock is now ticking on whether this turns into a more severe bout like that seen in the 1970s," said Shane Oliver, chief economist and head of investment strategy at AMP in Sydney.

FLURRY OF CENTRAL BANK MEETINGS

Investors will be watching several central bank meetings this week to gauge ‌the impact of the war on prices and rate outlooks, with the Bank of Japan expected to keep rates steady on Tuesday but signal its readiness to ⁠hike as soon as June.

Unlike ⁠last year when higher US tariffs forced a pause in its rate-hike cycle, the BOJ will stress its resolve to keep raising rates as the energy shock risks fueling broad-based inflation, sources familiar with its thinking told Reuters.

The Japanese yen was steady at 159.26 per US dollar, just shy of the crucial 160 level that traders worry could prompt Tokyo to intervene in the currency markets.

The yen has been stuck in the 159 range since early March as investors assess the impact of the oil shock on energy-import-dependent Japan and the BOJ's tightening trajectory.

Gregor Hirt, global CIO for multi asset at Allianz Global Investors, said the resumption of the hiking cycle hinges on geopolitical stabilisation, noting that if tensions eased and the Strait of Hormuz became navigable again, hikes could be back on the table by summer.

"However, investors should not expect aggressive signalling at the April meeting. Instead, the BOJ will likely favor a strategy of incremental guidance to preserve optionality under uncertainty."

The Federal Reserve, the European Central Bank and the Bank of England are all widely expected to hold rates steady this week, with markets looking for policymakers' views about the war's impact on the economy and the path for interest rates.

Business

Oil Climbs Nearly 2% as US-Iran Peace Talks Stall

The Noble Endeavor (C) and Well-Safe Defender (R) oil rigs are seen on the Cromarty Firth on the north-east coast of Scotland on April 24, 2026. (AFP)
The Noble Endeavor (C) and Well-Safe Defender (R) oil rigs are seen on the Cromarty Firth on the north-east coast of Scotland on April 24, 2026. (AFP)
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Oil Climbs Nearly 2% as US-Iran Peace Talks Stall

The Noble Endeavor (C) and Well-Safe Defender (R) oil rigs are seen on the Cromarty Firth on the north-east coast of Scotland on April 24, 2026. (AFP)
The Noble Endeavor (C) and Well-Safe Defender (R) oil rigs are seen on the Cromarty Firth on the north-east coast of Scotland on April 24, 2026. (AFP)

Oil prices extended gains on Monday, rising nearly 2% as peace talks between the US and Iran stalled while shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.

Brent crude futures rose $2.16, or 2.05%, to $107.49 a barrel by 2346 GMT, the highest since April 7, and US ‌West Texas Intermediate ‌was at $96.17 a barrel, up $1.77, or ‌1.88%.

Last ⁠week, Brent and ⁠WTI gained nearly 17% and 13%, respectively, the biggest weekly gains since the start of the war.

Hopes of reviving peace efforts receded during the weekend when US President Donald Trump scrapped a planned trip to Islamabad by his envoys Steve Witkoff and Jared Kushner, even as ⁠Iranian Foreign Minister Abbas Araqchi arrived In Pakistan.

"This ‌move puts the ball ‌squarely back in Iran’s court, and the clock is now ‌ticking loudly," IG market analyst Tony Sycamore said in ‌a note, adding that Tehran may be forced to shut production at its aging oil fields when it runs out of storage capacity.

Tehran has largely closed the strait while Washington ‌has imposed a blockade of Iran's ports.

Traffic through the Strait of Hormuz remained limited, ⁠with just ⁠one oil products tanker entering the Gulf on Sunday, shipping data from Kpler showed.

Goldman Sachs raised its oil price forecasts for the fourth quarter to $90 a barrel for Brent crude and $83 for WTI citing reduced output from the Middle East.

"The economic risks are larger than our crude base case alone suggests because of the net upside risks to oil prices, unusually high refined product prices, products shortages risks, and the unprecedented scale of the shock," GS analysts led by Daan Struyven said in an April 26 note.