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Egypt Fears Economic Consequences of a Regional War
(Ha'aretz) Zvi Bar'el - Egyptian economists have recently been highlighting a scenario in which a conflict between Israel and Iran, or the ongoing conflict with Hizbullah, could result in serious damage to Israel's natural gas fields, which supply 15% of Egypt's gas consumption. Existing shortages have already caused frequent power outages. Moreover, buying gas from anyone other than Israel would be more expensive. Egypt has already raised gas prices twice this year by 15% each time. Egypt's revenues from the Suez Canal are also down by 60% ($6 billion) compared to last year, due to Houthi attacks on shipping in the Red Sea. And declines in tourism have led to the firing of thousands of workers.