Khaberni - Egyptian President Abdel Fattah el-Sisi said on Thursday that his country is living in a state of "near emergency" economically due to the ongoing war in the Middle East, warning of the repercussions of the current crisis on prices.
Egypt, the most populous Arab country, has not been directly affected by the American-Israeli-Iranian war, while its Gulf allies are subjected to missile and drone strikes from Iran, in addition to significant repercussions on trade movement through the vital Strait of Hormuz.
However, by the close of trading on Thursday, the Egyptian pound fell to its lowest level in 8 months against the US dollar, recording 50.2 pounds per dollar amidst reports of short-term investment flows moving abroad.
The Egyptian economy, which heavily relies on imports, showed its extreme sensitivity to currency fluctuations, losing two-thirds of its value since 2022.
At an event held at the Military Academy, el-Sisi said that "the current crisis may incur some repercussions on prices," warning of "the possibility of referring price manipulators to military justice," according to a statement from his spokesperson.
Over the weekend, el-Sisi warned that the war could damage the Suez Canal, the other vital waterway in the region alongside the Strait of Hormuz and one of the main sources of foreign currency for Egypt.
Major shipping companies have redirected their navigation routes away from the region, altering their course around Cape of Good Hope off the southern tip of Africa.
El-Sisi clarified on Thursday that Egypt "is still trying to make sincere and honest mediation efforts to stop the war because its continuation will entail a heavy toll."
Cairo previously hosted nuclear talks between Iran and the International Atomic Energy Agency, and it guarantees the peace agreement mediated by the United States in Gaza between Israel and Hamas.
However, Iranian Foreign Minister Abbas Araghchi stated on Thursday that his country "does not demand a ceasefire" and is not interested in negotiations with the United States.
