CAIRO — Egyptian President Abdel-Fattah el-Sissi said Thursday his country was in an economic “state of near-emergency” as a result of the Middle East war, warning of runaway inflation.
The Arab world’s most populous nation, and Israel’s southern neighbor, has not been physically impacted by the US and Israeli war with Iran, which has seen strikes on Egypt’s wealthy Gulf allies and paralyzed trade through the vital Strait of Hormuz.
But by the close of business Thursday, the Egyptian pound had fallen to an eight-month low against the US dollar, trading at 50.2 to the dollar amid reports of short-term investment outflows.
Egypt’s import-dependent economy has proven highly sensitive to fluctuations in the currency, which has lost two-thirds of its value since 2022.
At a military academy event, Sissi said “the current crisis might have some repercussions on prices,” warning that price-gouging traders could be tried “in military courts,” according to a statement from his spokesman.
Get The Times of Israel’s Daily Edition
by email and never miss our top stories
By signing up, you agree to the terms
Over the weekend, Sissi had warned the war could spell trouble for Egypt’s Suez Canal, the region’s other vital waterway besides the Strait of Hormuz, and a key source of foreign currency for Egypt.
Ships cross the Suez Canal in Ismailia, Egypt, on April 16, 2025. (AP Photo/Amr Nabil)
Major shipping companies have already directed traffic away from the region, rerouting around the Cape of Good Hope off the tip of southern Africa.
Sissi said Thursday that Egypt was attempting “sincere and honest mediation efforts to stop the war, as its continuation will have a hefty toll.”
Cairo has in the past hosted nuclear talks between Iran and the United Nations’ International Atomic Energy Agency, and is a guarantor of the US-brokered ceasefire between Israel and the Hamas terror group in Gaza.
But Iranian Foreign Minister Abbas Araghchi said Thursday his country was “not asking for a ceasefire” or negotiations with the US.
Times of Israel staff contributed to this report.
You appreciate our wartime journalism
You clearly find our careful reporting of the Iran war valuable, at a time when facts are often distorted and news coverage often lacks context.
Your support is essential to continue our work. We want to continue delivering the professional journalism you value, even as the demands on our newsroom have grown dramatically during this ongoing conflict.
So today, please consider joining our reader support group, The Times of Israel Community. For as little as $6 a month you’ll become our partners while enjoying The Times of Israel AD-FREE, as well as accessing exclusive content available only to Times of Israel Community members.
Thank you,
David Horovitz, Founding Editor of The Times of Israel