Egypt in 'state of near-emergency' as conflict threatens economy
## Economic Impact of Middle Eastern Conflict on Egypt
Economic Impact of Middle Eastern Conflict on Egypt
President Abdel Fattah al-Sisi has highlighted Egypt's precarious economic situation due to the ongoing conflict in the Middle East. The country is facing increased inflationary pressures, exacerbated by its reliance on imports.
The conflict involving the US, Israel, and Iran has resulted in disruptions affecting Egypt's Gulf allies and has hindered trade through the Strait of Hormuz. This situation poses potential risks to the Suez Canal, a critical waterway for Egypt and a significant source of foreign currency.
The Egyptian pound depreciated to an eight-month low against the US dollar as of the close of business on Thursday, with the currency losing two-thirds of its value since 2022.
President Abdel Fattah al-Sisi has highlighted Egypt's precarious economic situation due to the ongoing conflict in the Middle East.
During a recent military academy event, President Sisi expressed concerns about potential price increases, emphasizing that traders engaging in price gouging could face military court trials. These remarks were disseminated through a statement by his spokesperson.
Furthermore, President Sisi mentioned ongoing mediation efforts aimed at resolving the conflict, though Iran has communicated it is not seeking a ceasefire or negotiations with the United States.
Based on reporting by Africanews.
