Cairo comes under scrutiny from its Gulf partners who feel the support for opposing Iran has been insufficient. However, Egypt's main concern is protecting its unstable economy from the consequences of an expanding confrontation.
The tension among the United States, Israel, and Iran has placed regional power Egypt in a complex diplomatic and strategic challenge.
Egypt is not solely an important ally of the United States and the Gulf nations—it has signed the 1979 Camp David Accords with Israel—but it had nearly reinstated complete diplomatic relations with Iran at the beginning of 2026.
Cairo's delicate balancing act thus far has involved openly criticizing Iran attacks on Gulf states While providing minimal military assistance. It has attempted to establish itself as an intermediary between Tehran and Washington, along with similar initiatives by Pakistan, Turkey, and Qatar. President Abdel-Fattah el-Sissi also traveled to the United Arab Emirates in May.
Abdel-Fattah el-Sissi perceives the conflict mainly as a danger to internal stability," said Michelle Pace, a specialist in Middle Eastern affairs and visiting scholar at the University of Oxford, during an interview with Ants. "The main aim of Egypt is to remain neutral in the Iranian conflict while managing its economic and security consequences.
Nevertheless, this method has led to conflicts with Egypt's Gulf neighbors, who anticipate backing from their allies amid Iranian assaults on their lands, investments, and properties, Timothy E. Kaldas, vice director of the Washington-based Tahrir Institute for Middle East Policy, stated to Ants.
He stated that there are not very discreet remarks specifically from the United Arab Emirates showing dissatisfaction and irritation towards Egypt.
For instance, Anwar Gargash, an advisor on foreign affairs for the UAE leadership, recently posted on X saying, "The Arab Gulf countries have supported and collaborated with everyone during periods of success... but where are you now during this period of difficulty?" Experts analyzing regional issues recognize that the comment was aimed at Cairo.
Economic dependence
Egypt, the largest Arab country with approximately 120 million inhabitants, is also experiencing the economic consequences of the conflict with Iran. Following the resumption of attacks by the Iran-backed Houthi rebels in Yemen on shipment in the Red Sea and the Bab al-Mandab Strait in support of Iran, shipping passing through Egypt's Suez Canal was reduced A new study from the International Crisis Group revealed that income from the Suez Canal decreased by 38% during the first quarter of 2026.
"The conflict is affecting an economy that was beginning to show fragile signs of rebound after the challenges posed by the COVID-19 pandemic and the impacts of hostilities in Ukraine and Gaza," the report stated.
The Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi, stated on Wednesday that Egypt has succeeded in eliminating debts payable to oil and gas partners, which decreased from approximately $6.1 billion in June 2024 to nothing by June 2026.
The financial rebound following several years of protracted crisis have mainly been fueled by investment from the Gulf region, according to the report’s writers. "Saudi Arabia and Kuwait have contributed $5.3 billion and $4 billion respectively to the Egyptian Central Bank, whereas the United Arab Emirates has invested $35 billion into the nation via a" major real estate acquisition "Qatar has pledged to invest $29.7 billion in yet another large-scale real estate transaction," said the analysis from the Crisis Group. The World Bank, the EU and the International Monetary Fund has also contributed to stabilizing Egypt's economy in recent years.
Currently, the situation seems to be deteriorating once more. In addition to the decline in Suez Canal earnings, also tourism has also declined and the costs of electricity and groceries have gone up.
Additionally, the countries in the Gulf are also experiencing substantial financial setbacks and enormous costs Damaged structures and facilities need restoration, weapons supplies must be refilled, and defensive capacities should be increased, noted Kaldas.
The access to financial assistance, despite their willingness to offer it, could face challenges, particularly as Egypt will have to compete with rebuilding demands in Lebanon, Syria and Gaza ," he said.
Diplomatic pressure
In the meantime, the United States is also increasing diplomatic pressure on Egypt. According to a report from Reuters on May 25, U.S. President Donald Trump stated that he had requested assistance from Saudi Arabia, Qatar, Pakistan Egypt, Turkey, and Jordan to join the Abraham Accords and work towards normalizing ties with Israel as part of his effort to gain backing for a possible deal concerning Iran.
In 2020 and 2021, the United Arab Emirates, Bahrain, Morocco, and Sudan had already normalized ties involving Israel, through the Abraham Accords. Saudi Arabia suspended talks following the Hamas attack Regarding Israel on October 7, 2023, and the subsequent conflict in Gaza, it set as a requirement the creation of a route towards an autonomous Palestinian state. Egypt and Jordan concluded peace agreements with Israel in 1979 and 1994, respectively.
Kaldas sees Trump's recent attempt at normalizing relations as an effort driven by desperation to highlight some form of success in the Iran issue.
"Egypt is also worried about the aggressive stance taken by the Israelis in the area, therefore providing them with any form of extra diplomatic backing is likely not something the Egyptian administration would consider doing right now," he stated.
Ties Relations between Egypt and Israel have been deteriorating Since the conflict in Gaza, Israel has consistently expressed its desire to have millions of Palestinians leave Gaza. relocate to Egypt.
Furthermore, Cairo is also concerned about a complete breakdown in Iran, Michelle Pace cautioned: "This would enhance Israel's influence in the region," she mentioned, noting that these factors restrict Cairo's strategic independence and encourage it to adopt practical diplomatic approaches instead of taking confrontational stances.
Crackdown on political dissent
Meanwhile, Cairo must also take into account public discontent Kaldas stated, noting that "A significant segment of the Egyptian populace supports Iran in this conflict and perceives it as the aggrieved party."
For Egyptian President Abdel-Fattah el-Sisi, this implies "avoiding excessive involvement in defending what many Egyptians perceive as U.S.-Israeli actions targeting Iran."
Nevertheless, visible expressions of opposition are still not allowed. Following the start of the conflict in Gaza, sporadic protests have been dispersed by law enforcement with attendees being taken into custody.
Sarah Leah Whitson, who previously led the Egyptian human rights group DAWN, cautioned that additional conflicts across the Middle East have provided the Egyptian administration with an opportunity to avoid scrutiny regarding its terrible track record on human rights.
Thousands continue to be wrongfully held in fake courts; several reporters and human rights activists are being held in custody, while thousands others encounter fresh accusations in large-scale terror proceedings," she said to Ants. "The army's authority has grown significantly, possessing similar arrest and prosecutorial powers over regular citizens as the Ministry of Justice."
Author: Jennifer Holleis