Drone Strike Raises Fears Over Suez Canal Energy Route

A drone strike on two gas tankers in Egyptian waters has raised concerns over energy security and the safety of the Suez Canal, a crucial route for global oil flows.

The attack on July 29, 2026, at the port of Damietta occurred just as Saudi Arabia's oil exports were being rerouted through the Red Sea due to the Iran war. This has led to increased traffic in the area, with around 30 ships clustered near the Port Said anchorage by Thursday.

According to Saul Kavonic, head of energy research at MST Marquee, passage through the Red Sea could now be put at risk, threatening up to five million barrels a day of oil supply currently able to bypass the Strait of Hormuz. This has led to market unease and concerns about the safety of the Suez Canal.

Crude loadings from the Sumed pipeline, which crosses Egypt from the Red Sea to the Mediterranean port of Sidi Kerir, climbed to 28.79 million barrels in July from 19.52 million in April, before the Houthi threat to block Saudi oil exports via the Bab el-Mandeb strait.

Aly Blakeway, head of Atlantic LNG at S&P Global Energy, said the market is not currently pricing in disruption to the canal itself, but any attack within the canal region would substantially raise war risk insurance premiums and change security assessments for the wider area. Matthew Wright, principal freight analyst at Kpler, added that any disruption to Suez would have an almost immediate inflationary effect.