Last week, the IMF said it had agreed to more than double Egypt's loan program from $3 billion to $8 billion in light of "significant macroeconomic challenges" the country is facing as the conflict in the Gaza Strip negatively affects its tourism industry and drives down revenues from the Suez Canal.
The $3 billion support package between Egypt and the IMF was struck in December 2022 and was to run over 46 months. The country has so far received only $350 million, according to Egyptian media.
In November 2023, Yemen's Houthi rebels said they would attack any Israeli-linked ship passing through the Red Sea in retaliation for the Israeli military operation in the Gaza Strip. The Suez Canal Authority said in early February that its monthly revenue almost halved in January year-on-year as vessels were forced to take longer alternative routes around Africa to avoid the crucial waterway, which connects the Red Sea to the Mediterranean.