The Suez Canal’s annual revenue fell by almost a quarter during its most recent financial year, as some shippers chose alternative routes in order to avoid being attacked by Houthis who are aligned with Iran in the Red Sea.

Osama Rahbie, head of the Egyptian Canal Authority said that revenues dropped to $7.2 billion from $9.4 in the previous financial year.

Since November, Houthis has been attacking commercial ships in the Red Sea as well as the Indian Ocean in order to show their support for the Palestinian militant group Hamas and its fight against Israel.

Rabie stated that the number of vessels using the canal will drop to 20,148 from 25,911 in 2023-24.

Egypt relies heavily on the Suez Canal for foreign currency. In recent years, authorities have tried to increase its revenue, including through an expansion in 2015. (Reporting and writing by Yusri Mohamed, Ahmed Elimam, Mark Potter and David Goodman)