Egypt's Foreign Minister Warns Economy Faces a 'Perfect Storm' From Gaza War, Hormuz Blockade, and Red Sea Attacks

Foreign Minister Badr Abdelatty said on August 25, 2026 that Egypt's economy was facing 'a perfect storm' from the combined effects of the Gaza war, the Strait of Hormuz blockade, and Houthi attacks on Red Sea shipping, with the resulting disruption to Suez Canal traffic costing Egypt roughly $11 billion in lost revenue. Abdelatty also said US-Iran negotiations were at a deadlock, with real decision-making power in Tehran now resting with the IRGC rather than Iranian diplomats, but stressed peace talks must continue. Despite the compounding pressures and Egypt's unprecedented debt load, he maintained the economy remains resilient, citing an estimated 5.5% growth rate and a large hard-currency reserve buffer.