Suez Canal revenues leap 56.6% in August amid Bab Al-Mandeb tensions

Suez Canal revenues reached $567.1 million in August, marking a 56.6% increase compared to the same month last year, Suez Canal Authority Chairman Osama Rabie said on Sunday. However, Rabie warned that escalating tensions in the Bab Al-Mandeb Strait, a primary gateway for ships heading to the Suez Canal, threaten to undermine this recovery.

Central Agency for Public Mobilization and Statistics data shows monthly revenues steadily improved from 17.3 billion Egyptian pounds (roughly $360 million) in January to 25.4 billion pounds ($505.5 million) in July. Bloomberg attributed part of this momentum to the rerouting of Saudi oil exports through the Red Sea following the closure of the Strait of Hormuz, which boosted vessel traffic in the region.

Despite recent gains, Rabie voiced deep concern over renewed instability around the Bab Al-Mandeb Strait in a World Maritime Day address. He said traffic linked to the strait makes up roughly 49% of the canal's cargo volume and revenue, with 271 million tons of goods passing through last year and generating about $2 billion.

The Israeli aggression on Gaza sharply reduced Suez Canal revenues after Ansar Allah (Houthi) forces in Yemen began targeting Red Sea shipping. These attacks caused canal revenues to fall from $8.7 billion in 2023 to $3.6 billion in 2025.

Egypt is seeking to restore shipping traffic through the Suez Canal as conditions improve, with Maersk and Hapag-Lloyd having announced earlier this month the resumption of more transits through the waterway. However, recent developments in Bab Al-Mandeb have reignited fears over the stability of navigation in the Red Sea amid the escalating confrontation between Ansar Allah and Saudi Arabia, coinciding with the war between the United States and Iran.

Al Mal newspaper quoted Rabie as saying that navigation in Bab Al-Mandeb had not been affected so far by the recent tensions. Major shipping companies have also not announced any rerouting away from the Red Sea and the Suez Canal, but warnings of expanding Middle East confrontations in the coming days could cast a shadow over the waterway’s financial outlook.