Egyptian Pound Hits Record Low at 52 per Dollar — War Economic Fallout Spreads to Egypt

Egypt's pound fell to a record low, trading at over 52 to the US dollar, as the economic fallout of the Iran war reached the region's most populous country. The US-Israeli war on Iran has disrupted global energy markets and trade, virtually halting traffic in the Strait of Hormuz — through which a fifth of the world's crude oil travels — and pushing some shipping companies away from Egypt's Suez Canal, a key source of foreign currency for Cairo. Egyptian President Abdel-Fattah el-Sissi warned last week that Egypt was in a state of near-emergency and cautioned of renewed inflationary pressures. Egypt's January inflation stood at 11.9% — elevated but significantly below the 40% peak of August 2023, which was addressed through a $50 billion international bailout largely funded by the UAE. The UAE, which contributed significantly to that bailout, is itself now absorbing Iranian attacks — 4 dead and 112 injured on Day 9 alone — creating an unusual dynamic in which Egypt's key financial backer is simultaneously under attack. Egypt's economy is particularly vulnerable to Suez Canal disruption: every major maritime rerouting around the Cape of Good Hope rather than through the canal costs Egypt tens of millions of dollars in transit fees daily. The pound's record low will increase import costs, fuel further inflation, and risk popular discontent in a country of 105 million people.