Egypt's Suez Canal benefits from Hormuz closure; cumulative losses reach $10.5 billion

The closure of the Strait of Hormuz has unexpectedly increased traffic through the Red Sea and Egypt's Suez Canal, as part of energy shipments take the alternative route; oil tanker transits through the canal rose by about one third in April. Even so, the Suez Canal still suffers from years of Red Sea insecurity, with throughput still 50 to 60% below 2024 levels. Egyptian officials have said cumulative losses from the disruption to canal traffic reached about $10.5 billion. Egypt hopes canal revenue will recover to around $8 billion in the 2026 to 2027 fiscal year. The development shows how the Hormuz crisis is reshaping global trade and energy routes.