Can Egypt's economy survive another regional war? ⚠️

What's inside: President El-Sisi warns regional conflict puts Egypt's economy in 'near-emergency' state, USA updates Egypt travel advisory, El-Sisi suggests putting price manipulators in military courts, and much more inside.

In partnership with

March 01 – 07 | 2026

Hey friends,

Things aren’t getting any calmer in the region around Egypt. The US–Israel war with Iran continues to escalate, with US President Donald Trump suggesting it could last weeks — potentially triggering a wider economic and security crisis across the Middle East.

As expected, it’s been a week filled with war- and conflict-related developments, and how that will affect Egypt. So let’s dive straight into the top stories.

A QUICK MESSAGE BEFORE YOU SCROLL…

The time and effort found in this newsletter come from local, independent, grassroots journalists from Egypt. You can continue receiving this newsletter and have unlimited access to all of Egyptian Streets’ content by subscribing for just USD 1.66 per month (EGP 80) and as little as USD 0.84 per month (EGP 40) for students, paid annually - that’s less than the price of a coffee to support independent journalism in Egypt!

Start learning AI in 2026

Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible: The Rundown AI.

It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses — tailored to your needs.

ECONOMY | WAR
SISI WARNS EGYPT’S ECONOMY IN ‘NEAR-EMERGENCY STATE’ AMID REGIONAL CONFLICT

President Abdel Fattah El-Sisi warned that Egypt is facing a “near-emergency” economic situation as the ongoing regional war places pressure on markets, trade routes, and prices across the country. The remarks came as the Middle East conflict escalates and begins affecting key economic channels tied to Egypt. 

Market warnings: Speaking during a national address, the president cautioned traders against exploiting the crisis through price manipulation or illegal increases in essential goods. He directed the government to study the possibility of referring price manipulators to military courts in order to deter speculation and protect consumers. 

Regional ripple effects: While Egypt is not directly involved in the conflict, the broader war has disrupted shipping routes, shaken currency markets, and raised concerns over inflation in the import-dependent economy. The Egyptian pound has already faced pressure, and disruptions to maritime trade could also affect revenues from the Suez Canal — one of the country’s key sources of foreign currency. 

Why it matters: Egypt’s economy is tightly connected to regional stability through trade, shipping, tourism, and remittances from Gulf countries. A prolonged conflict could raise import costs, strain the currency, and slow economic recovery — making market stability and price controls a top government priority in the weeks ahead.  

🏦 MORE BUSINESS & ECONOMY:

🚢 SUEZ CANAL: President El-Sisi warned that any disruption to the Iran-controlled Strait of Hormuz could further limit Suez Canal activity as regional tensions escalate – Know more

💵 CURRENCY: The Egyptian pound weakened past EGP 50 per dollar for the first time in nine months amid regional war jitters affecting currency markets – Know more

✈️ EXPORTS & AIRSPACE: Egyptian ministries coordinated emergency measures to mitigate the impact of regional airspace closures on exports and logistics routes – Know more

📱 PHONE IMPORTS: Egypt’s new mobile-phone import rules are causing frustration for everyday users as stricter customs procedures raise costs and delays for personal devices – Know more

💰️ FOREIGN RESERVES: Egypt’s net international reserves rose to a record USD 52.7 billion at the end of February, continuing a steady upward trend in foreign currency holdings – Know more

📊 PRIVATE SECTOR: Egypt’s non-oil private sector contracted in February for the first time in four months as demand weakened and input costs rose, according to the S&P Global PMI survey – Know more 

📈 GOLD PRICES: War jitters pushed gold prices higher in Egypt as investors turned to safe-haven assets amid escalating regional tensions – Know more

🌾 RURAL DEVELOPMENT: Egypt and the International Fund for Agricultural Development reinforced a USD 1.1 billion partnership aimed at advancing rural development and food security – Know more

📉 CAPITAL FLOWS: Foreign investors withdrew around USD 2 billion from Egyptian markets as regional tensions triggered volatility across emerging economies – Know more

TRAVEL ADVISORY | USA
USA KEEPS EGYPT AT “EXERCISE INCREASED CAUTION” AS REGIONAL WAR SPREADS

The United States has updated its travel guidance for Egypt, keeping the country at “Level 2: Exercise Increased Caution” while revising an earlier message that had urged Americans across the Middle East, including in Egypt, to depart immediately amid escalating regional conflict.

What changed: Following confusion caused by emergency alerts advising Americans to leave several Middle Eastern countries, the U.S. Embassy clarified that Egypt’s official advisory level remains unchanged. The Level 2 rating advises travelers to remain vigilant but does not recommend avoiding travel altogether. 

Regional context: The advisory update comes as conflict triggered by U.S.–Israeli strikes on Iran has disrupted airspace, aviation routes, and security conditions across much of the Middle East. Several neighboring countries were placed under stricter travel warnings or urged Americans to reconsider travel altogether. 

By maintaining Egypt’s Level 2 status while raising alerts elsewhere, Washington effectively signaled that the country remains relatively stable compared to the wider region — with several Americans safely traveling back from the Middle East by entering Egypt from Sinai.

🌍️ MORE FOREIGN AFFAIRS:

🇺🇸 MORE USA: US Secretary of State Marco Rubio thanked Egypt for helping evacuate American citizens and other nationals through Egyptian territory amid the ongoing regional conflict – Know more

🇱🇧 LEBANON: Egypt reaffirmed its support for Lebanon’s stability and sovereignty amid renewed Israeli attacks, warning that continued escalation risks further destabilizing the region – Know more

✈️ AVIATION: EgyptAir announced the gradual resumption of flights to Dubai and Dammam starting 6 March after several days of regional airspace disruptions caused by the widening Middle East conflict – Know more

MARKETS | PRICE CONTROLS
PRICE MANIPULATORS COULD BE TRIED IN MILITARY COURTS, SISI SUGGESTS

President El-Sisi warned that businesses and traders who manipulate prices during the current regional crisis could face referral to military courts, as the government moves to deter profiteering and protect consumers. 

What prompted it: Speaking during a Ramadan iftar hosted by the Egyptian Military Academy, El-Sisi said authorities are studying legal measures against individuals who exploit geopolitical tensions to inflate the prices of essential goods. He stressed that the ongoing conflict between USA-Israel and Iran could affect markets and that traders must not take advantage of the situation. 

Government stance: The president described current conditions as resembling a “state near emergency,” urging responsible behavior from businesses and the public alike. He emphasized that the government would intervene if necessary to prevent price manipulation and ensure the availability of essential commodities. 

Why it matters: Regional conflict has already begun affecting shipping routes, energy markets, and inflation expectations. By signaling tough enforcement measures, Cairo is attempting to stabilize domestic markets and prevent a repeat of panic-driven price hikes witnessed post-Russia and Ukraine war.  

🏠️ MORE POLITICS & SOCIETY:

🔪 YOUTH VIOLENCE: A university student was fatally stabbed outside campus following a dispute with another student, sparking renewed debate over youth violence – Know more

🪪 DIGITAL CITIZENSHIP: Egypt launched a national initiative to promote digital citizenship, aiming to raise awareness about responsible internet use and strengthen online safety among citizens – Know more

🧠 MENTAL HEALTH: The growing use of therapy-related language among Egyptian youth is reshaping conversations around mental health, relationships, and emotional awareness in everyday life – Know more