*Dr. Badr Abdelatty
The recent ceasefire agreement in Yemen with the United States, reached under the auspices of Oman, constitutes a constructive development for regional peace and stability
Regional escalation since 2023 had its repercussions on the freedom of navigation in the Red Sea, and accordingly on the daily passage of vessels through the Suez Canal.
Egypt was the most severely impacted, losing approximately $ 800 million of monthly revenue from the Suez Canal, with a total aggregate amount of $8 billion since the beginning of Israel’s war on Gaza.
The events that unfolded in the Red Sea underscored the necessity to ensure maritime security to guarantee the flow of global supply chains. If these events revealed anything, they emphasized the criticality of maritime navigation as a key pillar to regional security.
The recent ceasefire agreement in Yemen with the United States, reached under the auspices of Oman, constitutes a constructive development for regional peace and stability.
It offers a promising step toward de-escalation, while simultaneously contributing to the broader objective of securing vital maritime corridors. The agreement is expected to ease tensions along one of the world’s most strategic waterways, offering reassurance to global shipping stakeholders and supporting the steady flow of international trade through the Red Sea and the Suez Canal. This progress not only advances the cause of peace but also reinforces international confidence in the security and resilience of global supply chains.
The dynamics have shifted, and the restoration of maritime confidence and safe navigation of vessels will have significant economic benefits, including lowering insurance premiums, stabilizing freight costs, and ensuring that goods reach their destinations without unexpected delays. Throughout its history, the Suez Canal route has stood as a lifeline for international trade, carrying the weight of global commerce on its shoulders. Connecting the Mediterranean Sea to the Red Sea, it bridges continents, shortens shipping routes by up to 8,900 km, and brings distant markets within reach. This efficiency reduces costs, lowers emissions, and strengthens economic interdependence worldwide.
With the recent agreement, vessels can now navigate with greater confidence, allowing for smoother, faster, and more cost-effective transport of goods between Africa, Europe, Asia, and beyond. The agreement is a reminder that peaceful settlement of disputes, even in small steps, ripples outward to benefit millions, reinforcing the delicate web of trade that binds our global economy together. This is an opportunity for the global economy and markets to bounce back, especially after painful years resulting from the pandemic, the Ukrainian crisis, and the ongoing conflict in Gaza. The global economy is yearning for good news and free navigation in this vital maritime route is a welcomed development.
In the meantime, we must simultaneously address the root cause of regional escalation in order to preserve the current state of stability in the Red Sea. As such, Egypt will continue to exert its utmost efforts to achieve a permanent ceasefire in Gaza and establish a political horizon that fosters peace and security between both Palestinians and Israelis, while concurrently advocating the Red Sea’s role as a vital artery for global navigation and trade.
*Dr. Badr Abdelatty, Minister of Foreign Affairs, Emigration and Egyptian Expatriates of the Arab Republic of Egypt