The African country suffering the most from Iran's and Israel's missile strikes
The Middle East for the last few years has been no stranger to missile strikes, as tensions in the region continue to escalate with no real end in sight. The effects of these hostilities have unfortunately found their way into Africa, particularly countries located in the MENA region. Currently, Egypt is feeling the most heat from the recent conflict between Israel and Iran.
Tensions in the Middle East are impacting nearby regions, particularly Egypt in Africa.
Egypt's economy is severely affected, with its stock index experiencing dramatic losses.
Regional instability has led to a delayed inauguration of the Grand Egyptian Museum, affecting tourism revenue.
As tensions between Iran and Israel escalate into outright military war, Egypt has emerged as the African country facing the most immediate economic consequences.
With regional instability reverberating across markets, Egypt's banking industry has been particularly severely affected, worsening an already weak economic situation.
On Friday, Egypt's major stock index performed the worst, at one point recording the worst losses in five years.
Also the country's currency value dropped below the 50-per-dollar threshold.
'It is no surprise that with an open-ended Israel-Iran shooting war under way, that regional markets have been pounded too, as far as Egypt, which has seen gas supplies from Israel cut off,' said Hasnain Malik, a strategist at Tellimer in Dubai.
'The spike in oil price reflects the risk of Iranian exports going offline but not serious disruption to the Strait of Hormuz, through which 20% of global oil falls.'
Futhermore, Egypt's major stock index, the EGX 30, fell as much as 7.7% on the first day of trading since the war erupted.
All 31 publicly traded businesses reported losses while the pound traded as weak as 50.6 units per dollar, according to local-bank quotes, as per Bloomberg.
Beyond the financial markets, the turmoil has hampered Egypt's cultural and tourist goals.
The government postponed the long-awaited opening of the $1 billion Grand Egyptian Museum, which has been in the works for over two decades and is located barely a mile from the Giza Pyramids.
The ceremony, which was scheduled to begin formally on July 3, has been pushed back until the fourth quarter, with authorities citing "current regional developments" as the cause, another report by Bloomberg highlighted.
This delay is more than just symbolic; it stifles a vital cash stream for Egypt's tourist industry, which has long been a foundation of the national economy.
The Grand Egyptian Museum is expected to draw up to 5 million visitors yearly, resulting in a significant increase in foreign currency inflows and employment creation.
Israeli and Iranian military attacks have been fierce for the third day in a row. Targeting military, nuclear, and energy facilities in places including Tehran, Natanz, and Isfahan, Israel conducted a series of bombings deep into Iranian territory, purportedly killing key commanders and scientists and damaging missile installations.
Iran responded by attacking Israel with more than 200 ballistic missiles and drones as part of what it named Operation True Promise III.
Although many were stopped by Iron Dome, David's Sling, and Arrow systems, dozens managed to get past defenses and hit Tel Aviv, Haifa, Bat Yam, and other locations, killing at least 10–15 Israeli civilians and injuring hundreds more.
The U.S., Russia, China, and the EU have all called for de-escalation, but with both Israel and Iran signaling determination to press on, fears of a wider regional war are growing.
Analysts warn that if Hezbollah in Lebanon, or Iranian allies in Iraq and Yemen, become more involved, the situation could spiral beyond control.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Chicago Tribune
35 minutes ago
- Chicago Tribune
Oil flip-flops and shares are mixed after the US strikes Iranian nuclear sites
BANGKOK — Global markets appeared to take the U.S. strike against nuclear targets in Iran in stride as investors watched Monday to see how Iran will react. The price of oil initially jumped more than 2%, fell and then regained about half that much. U.S. stock futures edged lower and share benchmarks in Europe and Asia also were mostly lower. The attacks on three Iranian sites raised the stakes in the war between Israel and Iran and left questions about what remains of Tehran's nuclear program. It also increased the possibility that Iran might retaliate, potentially disrupting shipping through the narrow Strait of Hormuz, a waterway through which much of the world's crude oil passes. The big unknown is what Iran will do, analysts said. The price of Brent crude oil, the international standard, was up 1.2% at $77.91 per barrel. U.S. benchmark crude climbed 1.3% to $74.79. The future for the S&P 500 was little changed, while that for the Dow Jones Industrial Average was down 0.1%. Treasury yields were steady. In Europe, Germany's DAX lost 0.5% to 23,230.54 and the CAC 40 in Paris fell 0.6% to 7,541.25. Britain's FTSE 100 shed 0.2% to 8,761.53. Overall, there was no sign of panic. 'I believe what we are thinking is or the thinking is that it is going to be a short conflict. The one big hit by the Americans will be effective and then we'll get back to sort of business as usual, in which case there is no need for an immediate, panicky type of reaction,' said Neil Newman, managing director of Atris Advisory Japan. The conflict began with an Israeli attack against Iran on June 13 that sent oil prices yo-yoing and rattled other markets. Closing off the Strait of Hormuz would be technically difficult but it could severely disrupt transit through it, sending insurance rates spiking and making shippers nervous to move without U.S. Navy escorts. As a major oil producer, Iran may be reluctant to close down the waterway, which is used to transport its own crude, mostly to China. Oil is a major revenue source for the regime. 'The situation remains highly fluid, and much hinges on whether Tehran opts for a restrained reaction or a more aggressive course of action,' Kristian Kerr, head of macro strategy at LPL Financial in Charlotte, North Carolina, said in a commentary. Speaking to Fox News on Sunday, U.S. Secretary of State Marco Rubio said disrupting traffic through the strait would be 'economic suicide' and would elicit a U.S. response. 'I would encourage the Chinese government in Beijing to call them about that because they heavily depend on the Strait of Hormuz for their oil,' Rubio said. When asked about that at a routine briefing in Beijing, Chinese Foreign Ministry spokesperson Guo Jiakun told reporters in Beijing that 'China is willing to strengthen communication with Iran and relevant parties to continue playing a constructive role in promoting de-escalation' of the conflict. 'The Persian Gulf and its adjacent waters are important international channels for cargo and energy trade. Maintaining security and stability in this region serves the common interests of the international community,' he said. Tom Kloza, chief market analyst at Turner Mason & Co said he expects Iranian leaders to refrain from drastic measures and oil futures to ease back after the initial fears blow over. Disrupting shipping would be ' a scorched earth possibility, a Sherman-burning-Atlanta move,' Kloza said. Writing in a report, Ed Yardeni, a long-time analyst, agreed that Tehran leaders would likely hold back. 'They aren't crazy,' he wrote in a note to investors Sunday. 'The price of oil should fall and stock markets around the world should climb higher.' Other experts weren't so sure. Countries are not always rational actors and Tehran could lash out for political or emotional reasons, said Andy Lipow, a Houston analyst who has covered oil markets for 45 years. 'If the Strait of Hormuz was completely shut down, oil prices would rise to $120 to $130 a barrel,' Lipow said. That would translate to about $4.50 a gallon at the pump and hurt consumers in other ways, he said. Much of East Asia depends on oil imported through the strait. Taiwan's Taiex fell 1.4% while the Kospi in South Korea slipped 0.2%. In Tokyo, the Nikkei 225 edged 0.1% lower, with gains for defense contractors, oil companies and miners helping to make up for broad losses. 'The U.S. strike on Iran certainly is very good for defense equipment,' Newman of Atris Advisory said, noting that both Japan and South Korea have sizable military manufacturing hubs. Australia's S&P/ASX fell 0.4%. Hong Kong's Hang Seng regained lost ground, climbing 0.7%, while the Shanghai Composite index picked up 0.7%. In currency dealings, the U.S. dollar rose to 147.82 Japanese yen from 146.66 yen. The euro fell to $1.1464 from $1.1473.
Bloomberg
35 minutes ago
- Bloomberg
Bloomberg Surveillance TV: June 23, 2025
- Norman Roule, Senior Adviser at the Center for Strategic & International Studies - Daan Struyven, Head: Commodity Research at Goldman Sachs - Mark Esper, former US Secretary of Defense - Danny Danon, Israel's Ambassador to the United Nations Norman Roule, Senior Adviser at the Center for Strategic & International Studies, discusses the US strikes on Iran and what's next for conflict in the Middle East. Daan Struyven, Head: Commodity Research at Goldman Sachs, offers his outlook for oil and global commodities in the wake of the US' attack on Iran. Mark Esper, former US Secretary of Defense, talks about the strategy aimed at weakening Iran's nuclear capabilities and whether early indications show the US achieved its objectives. Danny Danon, Israel's Ambassador to the United Nations, talks about Israel's position in the Middle East after the US' strike on Iran.
Bloomberg
35 minutes ago
- Bloomberg
Netherlands Defence Minister: NATO-wide 5% defence spend would be "historic"
Ruben Brekelmans, Netherlands Minister of Defence said they and their European partners support President Donald Trump's calls to encourage Iran to the negotiation table in order to "come to a sustainable solution". Speaking about the upcoming NATO meeting, he told Bloomberg's Oliver Crook "if we agree to 5% spending on core defence and defence-related matters, that would be a historic step" and said it would be of particular significance "if 32 allies in unity agree on this". (Source: Bloomberg)
