Another Suez Crisis? | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 10, 2025
Another Suez Crisis?

World+Biz

TBS Report
27 March, 2021, 04:40 pm
Last modified: 27 March, 2021, 04:45 pm

Related News

  • India and Pakistan step up military strikes amid calls to de-escalate
  • Chief adviser to sit with stakeholders on Sunday to address capital market crisis
  • Nation on edge amid crime surge
  • Paper industry crawls amid rising costs, overproduction, demand slump
  • Edible oil crisis: Traders blame S Alam halting imports, incur 15% loss due to hike in int’l market

Another Suez Crisis?

Attempts to remove the ship have so far been futile, and the world economy is on the verge of a "new Suez Crisis," with over 200 vessels stranded on either side of the canal

TBS Report
27 March, 2021, 04:40 pm
Last modified: 27 March, 2021, 04:45 pm
Photo: BBC
Photo: BBC

Following a dust storm and high winds on March 23, a 1,312 foot long (400 m) container ship named Ever Given got stuck in the Suez Canal, creating global ripple effects as it totally disrupted traffic in both directions.

Attempts to remove the ship have so far been futile, and the world economy is on the verge of a "new Suez Crisis," with over 200 vessels stranded on either side of the canal.

What is the Suez Canal?

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The Suez Canal, which was built in 1869, connects the Red and Mediterranean seas. The man-made canal in Egypt separates Asia and Africa and is the shortest route between Europe and the western Pacific and Indian Oceans, making it a crucial shipping route for millions of tonnes of cargo per year.

The canal, which links two large regional economies, enables a substantial amount of trade. In 2020, the Suez Canal Authority (SCA) announced that 19,000 vessels sailed through its waters, an average of 52 per day. More than 10% of global seaborne trade and a comparable amount of crude oil flow through the 120-mile waterway.

Did you know? The Suez Canal was developed by Frenchman Ferdinand de Lesseps, who in the 1880s made an unsuccessful attempt to develop the Panama Canal

What was the first Suez Crisis?

The first Suez Crisis occurred on October 29, 1956, when Israel invaded Egypt, which was quickly followed by Britain and France.

In July 1956, Egyptian President Gamal Abdel Nasser nationalised the Suez Canal, sparking the war.

Previously, the canal was mainly operated by Britain and France, and it was a lucrative waterway that controlled about two-thirds of Europe's crude.

The British and French troops landed at Port Said and Port Fuad, and took possession of the area around the Suez Canal.

However, as they were behind schedule, it gave the Soviet Union the time to respond.  

The Soviets, keen to capitalise on Arab nationalism and establish a foothold in the Middle East, began selling arms to Egypt's government from Czechoslovakia in 1955, and later supported Egypt in the building of the Aswan Dam on the Nile River after the US failed to fund the initiative.

Nikita Khrushchev, the Soviet general, denounced the attack and vowed to launch nuclear weapons at Western Europe unless the Israeli-French-British force withdrew.

Why did the US intervene in the Suez Crisis?

President Dwight Eisenhower warned the Soviets that reckless talk of nuclear war would exacerbate the situation, and advised Khrushchev to avoid intervening directly in the conflict.

Eisenhower also gave strong threats to the French, British, and Israelis, urging them to abandon their campaign and pull out of Egypt.

The US President was enraged that the British, in particular, had failed to keep him aware of their plans. The US threatened all three nations with economic sanctions if they persisted in their attack and the threats were successful. By December, the British and French forces had withdrawn, and Israel had eventually caved in to US pressure in March 1957, relinquishing control of the canal.

The Suez Crisis was the first time a UN peacekeeping force was deployed. The United Nations Emergency Force (UNEF) was an armed force sent to the region to oversee the cessation of war and the evacuation of the three invading powers.

What were the consequences?

Britain and France both lost ground in the Middle East as a result of the crisis, which marked the beginning of Britain's fall in global power.

Two months after forces were withdrawn, British Prime Minister Anthony Eden resigned.

Israel did, however, accomplish some of its objectives, regaining maritime privileges in the Straits of Tiran.

Following the crisis, President Nasser became a strong hero figure for Arab and Egyptian nationalist movements.

Egyptian President Anwar el-Sadat reopened the canal in 1975 as a goodwill measure, the waterway continues to hold a vice-like grip on global commerce.

Illustration: Visual Capitalist
Illustration: Visual Capitalist

Implications of the blockage

The blockage of such a vital shipping lane is bound to have consequences.  According to Lloyd's List, every day the Suez Canal is closed, over $9 billion worth of goods trade is interrupted, reported Visual Capitalist.

European officials have also expressed concern about the long-term consequences of the blockage once it is cleared. A huge influx of ships could create massive congestion in European ports, upsetting supply chains even more.

Financial Times reported that crude oil prices have risen, tankers and freight ships are congested, and vendors of everything from oil to televisions are considering sending their shipments around the Cape of Good Hope, possibly adding a week to delivery times and substantial additional costs.

Top News

Suez Canal / Ever Given vessel / crisis

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Representational image. Photo: Collected
    35% tariff: Bangladesh, US 'agree on most issues' as first day of talks ends
  • How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
    How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
  • File photo of containers at Chattogram port/TBS
    US buyers push Bangladeshi exporters to share extra tariff costs

MOST VIEWED

  • File Photo: Rajib Dhar/TBS
    Bangladesh faces economic impact as US introduces 35% tariff on exports
  • None saw it coming: What went wrong in Bangladesh’s tariff negotiation with US 
    None saw it coming: What went wrong in Bangladesh’s tariff negotiation with US 
  • Clashes took place between police and protesters in Sylhet on 2 August. Photo: TBS
    Hasina authorised deadly crackdown on protesters during 2024 July uprising, BBC verifies leaked audio
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    BB governor asks banks to create forced loans for unpaid import LCs
  • Representational image. Photo: TBS
    35% US tariff to be disastrous for Bangladesh's exports, say economists and exporters
  • Trump's 35% tariff zaps Bangladesh's $8.4 billion export lifeline
    Trump's 35% tariff zaps Bangladesh's $8.4 billion export lifeline

Related News

  • India and Pakistan step up military strikes amid calls to de-escalate
  • Chief adviser to sit with stakeholders on Sunday to address capital market crisis
  • Nation on edge amid crime surge
  • Paper industry crawls amid rising costs, overproduction, demand slump
  • Edible oil crisis: Traders blame S Alam halting imports, incur 15% loss due to hike in int’l market

Features

Women are forced to fish in saline waters every day, risking their health to provide for their families. Photo: TBS

How Mongla’s women are bearing the brunt of rising salinity

14h | Panorama
Dr Mostafa Abid Khan. Sketch: TBS

Actual impact will depend on how US retailers respond: Mostafa Abid Khan

1d | Economy
Thousands gather to form Bangla Blockade in mass show of support. Photo: TBS

Rebranding rebellion: Why ‘Bangla Blockade’ struck a chord

2d | Panorama
The Mitsubishi Xpander is built with families in mind, ready to handle the daily carpool, grocery runs, weekend getaways, and everything in between. PHOTO: Akif Hamid

Now made-in-Bangladesh: 2025 Mitsubishi Xpander

3d | Wheels

More Videos from TBS

Leaked audio: Jinping thought Trump was crazy

Leaked audio: Jinping thought Trump was crazy

11h | TBS World
What can be done to counter the impact of US tariffs?

What can be done to counter the impact of US tariffs?

12h | Podcast
Elections can be held before Ramadan if preparations are complete: Press Secretary

Elections can be held before Ramadan if preparations are complete: Press Secretary

12h | TBS Today
What Elon Musk Gets Wrong About Our Broken Political System

What Elon Musk Gets Wrong About Our Broken Political System

1h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net