What are Cairo’s Options to Confront Impact of Red Sea Tensions on Suez Canal?

An American destroyer in the Red Sea to protect ships from Houthi attacks (US Army)
An American destroyer in the Red Sea to protect ships from Houthi attacks (US Army)
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What are Cairo’s Options to Confront Impact of Red Sea Tensions on Suez Canal?

An American destroyer in the Red Sea to protect ships from Houthi attacks (US Army)
An American destroyer in the Red Sea to protect ships from Houthi attacks (US Army)

Official statements in Egypt about a 60 percent decline in revenues from the Suez Canal have renewed questions about Cairo’s options to confront the impact of Red Sea tensions on the canal.
While some experts talked about diplomatic routes, others stressed that the Egyptian effort has limited results due to complex political obstacles that have led to these tensions, mainly the war in Gaza.
Minister of Finance Mohamed Maait, said that the Suez Canal revenues declined by 60 percent.
In recent statements on the sidelines of the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington, he attributed this fall to the continued tensions in the Red Sea.
Since the end of November, the Yemeni Houthi group has been targeting ships in the Red Sea and Bab al-Mandab region, which it says are “owned or operated by Israeli companies.”
The attacks came in response to the ongoing war in the Gaza Strip, and forced international shipping companies to divert their vessels to the Cape of Good Hope route, despite the increase in shipping cost and time.
The Deputy Director of the Al-Ahram Center for Political and Strategic Studies, Ayman Abdel Wahab said that the political options available to Egypt to confront the Red Sea tensions “depend on maintaining diplomatic moves to enhance stability in the region.”
“Egypt needs to intensify its political movements with all parties to reach an international consensus to enhance stability in the Red Sea, and not just secure the movement of ships,” he said, adding: “Regional and international powers must reduce competition over Red Sea ports and seek a greater level of coordination.”
For his part, Economic Expert Wael Al-Nahas told Asharq Al-Awsat that Egypt’s current options to confront the decline in Suez Canal revenues are to increase exports in all fields to ensure a regular dollar flow.”
In a report issued on Monday, the World Bank indicated that the continuation of the crisis resulting from the Houthi attacks on vessels passing through the Red Sea, and the decrease in Suez Canal transit traffic, “will cause losses of about $3.5 billion in Egypt’s dollar revenues.”
Former Egyptian Foreign Minister and Chairman of the Egyptian Council for Foreign Affairs, Ambassador Mohamed Al-Orabi, said that Egypt had limited options to address the current situation.
He told Asharq Al-Awsat: “Egypt alone cannot deal with the continued tensions in the Red Sea, and any Egyptian effort will have limited results due to the complexity of the political reasons that led to these tensions, mainly the war in Gaza.”

 

 



Egypt and Russia Discuss Developments in Sudan, Syria, Lebanon, Gaza

Egyptian President Abdel Fattah al-Sisi and Russian President Vladimir Putin during the launch of the installation of the pressure vessel for the first reactor at the El-Dabaa nuclear plant last month (Egyptian presidency)
Egyptian President Abdel Fattah al-Sisi and Russian President Vladimir Putin during the launch of the installation of the pressure vessel for the first reactor at the El-Dabaa nuclear plant last month (Egyptian presidency)
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Egypt and Russia Discuss Developments in Sudan, Syria, Lebanon, Gaza

Egyptian President Abdel Fattah al-Sisi and Russian President Vladimir Putin during the launch of the installation of the pressure vessel for the first reactor at the El-Dabaa nuclear plant last month (Egyptian presidency)
Egyptian President Abdel Fattah al-Sisi and Russian President Vladimir Putin during the launch of the installation of the pressure vessel for the first reactor at the El-Dabaa nuclear plant last month (Egyptian presidency)

Egypt and Russia discussed developments in Sudan, Syria, Lebanon and Gaza on Friday during a phone call between Egyptian Foreign Minister Badr Abdelatty and his Russian counterpart Sergei Lavrov, in the latest round of ongoing coordination and consultations between the two countries on bilateral ties and regional and international issues of mutual concern.

The Egyptian Foreign Ministry said the call covered the close relationship between Egypt and Russia, which it said has gained growing momentum across various areas of cooperation, particularly economic and trade fields.

Abdelatty expressed Egypt’s pride in the strategic partnership binding the two countries, describing it as the governing framework for bilateral cooperation across multiple sectors.

He stressed the need to continue joint work to advance ongoing projects, notably the Dabaa nuclear plant, in order to boost Russian investment in Egypt and expand cooperation between both sides.

Last month, Egyptian President Abdel Fattah al-Sisi and Russian President Vladimir Putin witnessed via video conference the installation of the pressure vessel for the first reactor unit at the nuclear plant, as well as the signing of the nuclear fuel procurement order.

Experts described the step as the first milestone toward nuclear energy production.

El-Dabaa plant is Egypt’s first nuclear power facility, located in the town of Dabaa in Marsa Matrouh governorate on the Mediterranean coast. Russia and Egypt signed a cooperation agreement in November 2015 to build the plant, with the contracts entering into force in December 2017.

Abdelatty underscored during Friday’s call the importance of implementing UN Security Council Resolution 2803 and moving ahead with the second phase of the US president’s peace plan for Gaza, noting the need to enable the international stabilization force to carry out its mandate and consolidate the ceasefire.

According to the Foreign Ministry, Abdelatty outlined Egypt’s efforts within the Quad mechanism to stop the conflict and preserve the unity and integrity of the Sudanese state. He also reiterated Egypt’s longstanding position supporting the unity, sovereignty, security and stability of Lebanon.

He renewed Cairo’s call for respecting the unity and sovereignty of Syrian territory and rejecting any actions or interventions that could undermine the country’s stability, urging the activation of a comprehensive political process that meets the aspirations of the Syrian people.

Egypt said in late November that it hoped to see the start of a political process in Sudan without exclusion and reaffirmed its respect for Sudanese sovereignty.

The Quad, which groups Saudi Arabia, Egypt, the United Arab Emirates and the United States, has been working to secure a ceasefire in Sudan.

It held a ministerial meeting in Washington in September and stressed the need to exert every effort to resolve the conflict. In August, it proposed a roadmap calling for a three-month humanitarian truce, followed by a permanent ceasefire, paving the way for a political process and the formation of an independent civilian government within nine months.

The call also touched on developments related to Iran’s nuclear program.

Abdelatty stressed the importance of continued efforts to de-escalate tensions, build confidence and create conditions that offer a real opportunity for diplomatic solutions and the resumption of talks aimed at reaching a comprehensive agreement that accommodates the interests of all parties and contributes to regional security and stability.

Separately, Abdelatty and Lavrov discussed the war in Ukraine.

The Egyptian foreign minister reiterated Cairo’s consistent position that efforts must continue to pursue peaceful settlements to crises through dialogue and diplomatic means in a way that preserves security and stability.


Yemen Leader Warns against Unilateral Actions Undermining Unity, State Sovereignty

Yemeni armed forces flash the V-sign for victory as they ride in the back of a lorry as they celebrate the 58th anniversary of National Independence Day, in the port city of Aden, November 30, 2025. (Photo by Saleh Al-OBEIDI / AFP)
Yemeni armed forces flash the V-sign for victory as they ride in the back of a lorry as they celebrate the 58th anniversary of National Independence Day, in the port city of Aden, November 30, 2025. (Photo by Saleh Al-OBEIDI / AFP)
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Yemen Leader Warns against Unilateral Actions Undermining Unity, State Sovereignty

Yemeni armed forces flash the V-sign for victory as they ride in the back of a lorry as they celebrate the 58th anniversary of National Independence Day, in the port city of Aden, November 30, 2025. (Photo by Saleh Al-OBEIDI / AFP)
Yemeni armed forces flash the V-sign for victory as they ride in the back of a lorry as they celebrate the 58th anniversary of National Independence Day, in the port city of Aden, November 30, 2025. (Photo by Saleh Al-OBEIDI / AFP)

Yemeni Presidential Leadership Council chief Rashad al-Alimi warned on Friday that unilateral actions and internal disputes within government-controlled areas risk undermining state sovereignty and strengthening the Iran-backed Houthi group.

Al-Alimi made the remarks before leaving the interim capital Aden for Saudi Arabia, where he is set to hold high-level consultations with regional and international partners amid sensitive developments in eastern Yemen, particularly Hadramout.

He reaffirmed the government’s commitment to national partnership and collective responsibility to complete the transitional phase in line with the 2022 power-transfer declaration and the Riyadh Agreement.

“The state alone bears responsibility for protecting its national institutions and safeguarding citizens’ interests,” Al-Alimi said, warning against any measures that would challenge the government’s or local authorities’ exclusive powers, harm security and stability, deepen humanitarian suffering, or undermine economic recovery and international confidence.

The council chief said restoring state institutions, ending Houthi militia control, and pursuing economic reforms would remain top national priorities. He cautioned that any distraction by side conflicts “only serves the Iranian project and its destructive tools,” according to the state-run Saba news agency.

Al-Alimi praised Saudi Arabia for mediating the latest truce agreement in Hadramout and urged full adherence to its terms. He said the deal should serve as a foundation for stability in Hadramout and the wider region, describing the province as “a cornerstone of Yemen’s and the region’s stability.”

He voiced full support for local authorities and tribal leaders seeking to restore calm and enable Hadramout residents to manage their own local affairs in line with the PLC’s pledges and plan to normalize conditions in the province.

Al-Alimi also instructed the local authorities and relevant ministries to form a committee to investigate alleged human rights and humanitarian law violations and damages to public and private property in the province’s Wadi and desert districts, and to ensure victims receive redress.

The Yemeni leader urged all political and social groups to put aside differences, act responsibly, and unite in facing common challenges. He called for rallying behind the government to fulfill its obligations and place citizens’ welfare and dignity above all else.


Lebanon’s Leaders Unite on Technical, Security Track in Talks with Israel

Parliament Speaker Nabih Berri meets with UN Security Council Delegation in Beirut (Lebanese Parliament)
Parliament Speaker Nabih Berri meets with UN Security Council Delegation in Beirut (Lebanese Parliament)
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Lebanon’s Leaders Unite on Technical, Security Track in Talks with Israel

Parliament Speaker Nabih Berri meets with UN Security Council Delegation in Beirut (Lebanese Parliament)
Parliament Speaker Nabih Berri meets with UN Security Council Delegation in Beirut (Lebanese Parliament)

Cabinet sources said Lebanon’s three top leaders remain aligned as negotiations with Israel move into a new phase, marked by the appointment of a civilian envoy, former ambassador to Washington and lawyer Simon Karam, to lead Lebanon’s delegation to the Mechanism Committee.

The move is intended to jolt the committee out of months of stagnation and push it toward a security agreement anchored in enforcing a cessation of hostilities, after earlier rounds were dominated by routine tallies of Israeli violations conducted with United Nations peacekeepers.

The sources said the leaders’ agreement to pull the Mechanism out of its deadlock coincided with drawing political boundaries for the talks.

These boundaries are strictly limited to ending Israeli violations and attacks, securing a withdrawal from the south, releasing Lebanese detainees, and revisiting and correcting border demarcation in response to Lebanon’s reservations over disputed points along the Blue Line that it considers part of its sovereign territory.

The sources told Asharq Al-Awsat that Lebanon insists on restricting the negotiations to non-negotiable security issues. It will not allow the talks to drift into discussions on normalizing relations with Israel or striking a peace agreement.

This position is shared by President Joseph Aoun, Prime Minister Nawaf Salam, and Parliament Speaker Nabih Berri, who was the first to propose adding civilians to the Mechanism.

The three leaders reiterated their stance ahead of the first round of talks, attended by US envoy Morgan Ortagus and joined by Karam, in defiance of the agenda set by Israeli Prime Minister Benjamin Netanyahu.

They said Netanyahu is trying to raise the stakes to provoke Hezbollah against the state and sow confusion, even as the Israeli army continues its violations to turn the group’s base against it.

This became evident in the targeting of several homes between the banks of the Litani River, despite containing no weapons depots.

The sources said Netanyahu is escalating militarily to force Lebanon to accept Israeli terms, although he knows the negotiations will not deviate from their technical and security framework.

Lebanon, they said, remains committed to ensuring that only the state holds weapons.

The sources noted Berri’s insistence that he was the first to propose adding civilians to the Mechanism and asked where Hezbollah Secretary-General Sheikh Naim Qassem stands on this proposal.

They asked whether he ever objected to his “older brother’s” suggestion, given that Qassem had declared in an open letter to the three leaders that he rejects negotiations with Israel.

Qassem later walked back parts of that letter by having a senior Hezbollah official convey a message that Berri was not its intended target, in an effort to prevent a rupture within the Shiite political camp.

The sources also questioned why Hezbollah objects to the talks if its “older brother” is the one negotiating on its behalf and was behind the United States mediated ceasefire agreement brokered by Amos Hochstein.

They said the only card Hezbollah has left is raising the ceiling of its objections, since it no longer has the ability to reset the negotiating table at a time when the balance of power has tilted in Israel’s favor, particularly after the group’s unilateral support for Gaza cost it its previous deterrence and rules of engagement.

The sources said Hezbollah lacks alternatives that would allow it to reverse the balance of power and is limiting itself to loud political objections that it cannot translate into military action.

This comes despite its insistence on keeping its weapons and its accusation that the Salam government committed a mistake by agreeing to the principle that arms must be exclusively in the hands of the state, beginning from north of the Litani to Lebanon’s international border with Syria, in parallel with progress in the negotiations.

They said Hezbollah is forced to calibrate its position, since it cannot afford to break with Aoun or jeopardize its alliance with Berri, a rupture that would leave the group exposed at a moment when it seeks internal protection.

Any strain in these relationships would also create negative repercussions for the Shiite community. The sources asked why the group does not place its cards in Berri’s hands, as he is better positioned to navigate Shiite public sentiment that seeks the liberation of the south and the return of its residents to their villages.

Berri is viewed, even by rivals, as the essential gatekeeper to any settlement that could restore international attention to Lebanon and open a path for reconstruction. He enjoys Arab and international ties that Hezbollah lacks, as the group remains reliant solely on Iran.

The sources said the negotiations’ entry into a new phase prompted United States pressure on Israel to prevent the war from expanding, after Lebanon agreed to Washington’s request to add a civilian to the Mechanism and task him with leading the delegation.

They urged Hezbollah to stand behind the state’s diplomatic choice and said the group’s fears that the talks could lead to a peace treaty with Israel are unfounded.

They noted that Berri himself was the first to support bringing civilians into the process, which should reassure Hezbollah and encourage it to give diplomacy a chance.

They added that Salam is not acting unilaterally and is coordinating with Aoun. Both leaders are working together to implement the government’s commitment to ensuring that only the state holds weapons.

They also revealed that communication between Aoun and Berri has not stopped. The two men reviewed the atmosphere surrounding the Mechanism’s meeting in Naqoura before the latest cabinet session.

According to the sources, Berri instructed his parliamentary bloc and senior Amal Movement members not to comment on the negotiations, positively or negatively.

The directive came because he wants to centralize the political message and avoid dragging party members on both sides into disputes that could spill into the streets.

Hezbollah, they said, also wants to protect its relationship with its sole remaining ally in Lebanon after its former partners in the so-called Axis of Resistance endorsed the principle of exclusive state authority over weapons.

The sources said Hezbollah knows that avenues for repairing its Arab and international relations remain closed, unlike Berri who maintains wide ties.

They questioned what Hezbollah is counting on after its leadership rejected Egypt’s initiative, insisting, according to Western diplomatic sources cited by Asharq Al-Awsat, on linking its position to US-Iran negotiations in hopes of safeguarding Iran’s leverage in Lebanon after regional setbacks for the Axis.

They said the government will take note of Hezbollah’s objection, although it will have no impact on the course of the talks.

Hezbollah will not mobilize its supporters in the streets to avoid friction with Amal, particularly since Berri does not oppose the launch of negotiations, which remain tied to liberating the south and implementing Resolution 1701.

Any attempt by Hezbollah to outbid Berri for populist gain would backfire and weaken the group’s standing within its own community.