Trade routes have traditionally been used for strategic advantage with Cape Town, once the only stop when sailing between east and west.
What was described as “The Fairest Cape” became less vital with the completion of the Suez Canal in 1869.
Today the canal, an artificial sea-level waterway in Egypt connecting the Mediterranean Sea to the Red Sea, is one of the most important points of trade with thousands of vessels passing through every year.
But now there is a new threat to the area and shipping companies are replanning their journeys.
The Houthi rebels in Yemen have launched maritime assaults in the Red Sea with the intention of pressuring Israel into ending its war in Gaza.
But they have inadvertently set the stage for broader geopolitical shifts.
They are affecting nations and economies far removed from the epicentre of the conflicts in Yemen and Gaza – and new shipping routes appear to be affecting at least one BRICS+ country.
Egypt, the biggest U.S. ally in the region, is experiencing a 50 percent reduction in revenue through the Suez Canal, exacerbating the country’s currency crisis.
The Egyptian Pound has lost significant value over the past few weeks with the country’s central bank needing to step in.
But Egypt isn’t alone in being affected.
The European Union’s increased dependency on alternative energy sources and supply chains through the Suez Canal is also of major concern.
Energy traders say that as European nations grapple with diversifying their energy supplies amid a fraught relationship with Russia, the United States will have a stronger grip on supply and prices.
However, the US has been launching strikes on Houthi bases in Yemen and it’s hoped that this will have some sort of effect on bringing peace to the Suez Canal area in reopening trade.
