Suez Canal chief says Red Sea crisis did not create sustainable route to replace canal

CAIRO (Reuters) -Suez Canal Authority Chairman Osama Rabie said on Wednesday that the Red Sea crisis did not create a sustainable route to replace the canal, adding that there were positive indicators for the return of stability in the region.

Iran-backed Houthi militants have attacked vessels in the Red Sea area since November 2023, disrupting global shipping lanes by forcing vessels to avoid the nearby Suez Canal and reroute trade around Africa, raising the costs for insurers.

Egyptian President Abdel Fattah al-Sisi said in December the disruption cost Egypt around $7 billion in revenue from the Suez Canal in 2024. That’s a drop of more than 60% from its revenue a year before from the canal, Sisi said.

(Reporting by Momen Saeed Atallah; Writing by Tala Ramadan and Nayera Abdallah; Editing by Bernadette Baum)