Suez Canal
Why in News?
- Canal’s historical significance, strategic importance, and its impact on global trade. It delves into the events surrounding the nationalization of the canal and the subsequent geopolitical tensions.
Important Key Points:
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Historical Context: The Suez Canal, completed in 1869, was initially controlled by British and French interests. In 1956, Egyptian President Gamal Abdel Nasser nationalized the canal, leading to the Suez Crisis, where Britain, France, and Israel invaded Egypt to regain control.
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Strategic Importance: The canal serves as a crucial maritime route, connecting the Mediterranean Sea to the Red Sea, facilitating shorter shipping routes between Europe and Asia. Approximately 12% of global trade passes through the Suez Canal, underscoring its significance in international commerce.
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Economic Impact: The canal is a significant source of revenue for Egypt and plays a vital role in global supply chains. Disruptions, such as blockades, can have substantial economic repercussions worldwide.
