Egypt backs Saudi Arabia amid Iran strike threats

Egypt is now positioning itself to help Saudi Arabia defend against Iranian-backed strikes, a decision shaped by financial pressures as regional conflicts intensify. The decision follows Iran’s stated intention to attack Saudi refineries, data centers, and undersea cables if the U.S. launches strikes on Iranian nuclear facilities, missile sites, and energy infrastructure.

Saudi Arabia has already endured multiple Houthi drone and missile attacks on its energy infrastructure, prompting Egypt to intervene. Cairo cannot risk losing Saudi investment or disrupting Red Sea shipping routes, which fund its gas imports. A $5.3 billion Saudi deposit at Egypt’s central bank is due this month, while Houthi strikes have already cost the Suez Canal billions in revenue. The conflict has also strained Egypt’s energy supplies, as Israel suspended gas exports to Cairo, forcing the country to purchase liquefied natural gas (LNG) at unprecedented prices. Global oil costs spiked after attacks on Qatar and near-blockades of the Strait of Hormuz, pushing Egypt’s monthly energy import bill to $2.5 billion in March.

Egypt’s economy has taken a severe hit. Foreign investors withdrew $17 billion from Egyptian Treasury debt over seven weeks, weakening the pound by up to 17% and pushing inflation past 15%. With oil prices nearing $100 per barrel, the government raised fuel costs by up to 30% and mandated early shop closures to conserve power. President Abdel Fattah el-Sisi has asked parliament to approve military support for Saudi Arabia, with a vote set for October 26. Pro-Sisi lawmakers are expected to back the measure, though Egypt has ruled out sending troops to Yemen.

Egypt’s gas infrastructure remains fragile. Domestic production has declined for years, leaving the country dependent on LNG imports. When a drone hit Egypt’s Energos Winter regasification vessel at Damietta and set a second LNG carrier on fire in late July, it took out one-tenth of Egypt’s import capacity.

The decision shows Egypt’s precarious position. The country cannot afford to lose Saudi Arabia as its largest investor or ignore the threat of further regional instability. With Iran now directly threatening Saudi energy assets, Egypt’s participation in defense efforts may stem more from necessity than from alliance loyalty.