Public concern in Egypt is rising over the continuation of the Israeli-American war on Iran, amid fears of economic repercussions and difficult financial burdens that could weigh heavily on Egyptians, who have already endured considerable hardship after more than ten years under the rule of the current president, Abdel Fattah El-Sisi.

Renewed strain is once again hanging over the Egyptian economy, already weakened at its core, as the repercussions of the war continue into their second week. Record increases in oil and gas prices have coincided with a sharp decline in the value of the Egyptian pound against the dollar, disruptions to shipping and trade through the Suez Canal, and a slowdown in tourism, pointing to a costly toll across multiple fronts.

The Egyptian economy appears increasingly vulnerable to regional and international crises and quickly pays the price for any escalation in the region, particularly if it involves Gulf countries that host millions of Egyptian workers (around 8 million). Their remittances reached a record high, rising by 40.5 percent to approximately $41.5 billion in 2025.

Public concern among Egyptians has grown as the local currency continues to decline, surpassing 52 pounds to the dollar. This means higher costs for imported goods, whether consumed by the public or required by factories as raw materials, intermediate goods, and capital goods. The situation is further compounded by rising shipping costs driven by higher oil prices, as well as increased insurance costs for imported goods.

The ongoing escalation, with Hezbollah in Lebanon joining the war and the possibility of the Houthis in Yemen entering the conflict in support of Iran, threatens to bring tensions back to the Bab el-Mandeb Strait and the Red Sea, which would mean an almost complete halt to international maritime traffic passing through the Suez Canal.

The ongoing escalation, with Hezbollah in Lebanon joining the war and the possibility of the Houthis in Yemen entering the conflict in support of Iran, threatens to bring tensions back to the Bab el-Mandeb Strait and the Red Sea, which would mean an almost complete halt to international maritime traffic passing through the Suez Canal.

Pressure on the Egyptian pound has also intensified due to the exit of more than $2 billion........

© Middle East Monitor