Egypt in ‘state of near-emergency’ as conflict threatens economy

The war in the Middle East has pushed Egypt to an economic state of near emergency.

That’s was the warning on Thursday from President Abdel Fattah al-Sisi, over fears of runaway inflation in the import-dependent country.

The conflict between the US, Israel and Iran has seen strikes on Egypt’s Gulf allies and paralysed trade through the Strait of Hormuz.

The conflict could also spell trouble for the Suez canal – a vital waterway for Egypt and key source of foreign currency.

The Egyptian pound fell to an 8-month low against the US dollar at close of business on Thursday. The currency has lost two-thirds of its value since 2022.

At a military academy event, Sisi said “the current crisis might have some repercussions on prices”, warning that price-gouging traders could be tried “in military courts”, according to a statement from his spokesman.

El-Sisi said he was attempting mediation efforts to stop the war but Iran has said it’s not asking for a ceasefire or negotiations with the United States.