How The Iran War Represents The Straw that Broke the Camel’s Back for Egypt’s Economy
Khaled Hassan | The Grand Strategy | Mar 22, 2026
Cairo, Egypt – March 19, 2026 – In a move that signals the deepest anxiety over Egypt’s financial stability in decades, the government of Prime Minister Mostafa Madbouly has rolled out a package of austerity measures that harken back to wartime economies. Effective March 28, shops, malls, and restaurants must close by 9:00 p.m., street lighting will be dimmed, and a shift to remote work is being considered for public institutions. These unprecedented restrictions, which effectively shut down the economy early in a city that typically comes alive at night, are a direct consequence of the raging Iran War.
The conflict has sent Egypt’s energy import bill into a tailspin. According to Madbouly, the monthly cost of natural gas imports has nearly tripled from approximately $560 million before the war to a staggering $1.65 billion today. “We are working according to the worst-case scenarios”, the Prime Minister stated during a press conference on Wednesday, justifying the move to rationalise consumption as a way to avoid even steeper price hikes.
The gravity of the moment was underscored on Wednesday evening when the leader of Egypt’s Coptic Orthodox Church, Pope Tawadros II, issued a rare and direct call for national sacrifice. Speaking from the papal headquarters in Cairo, the Pope threw the full weight of the church behind the government’s new policies.
Pope Tawadros urged all Egyptians to view adherence to the austerity measures not merely as compliance, but as a “national duty.” He emphasised that rationalising consumption “is no longer a choice, but a necessity”, explicitly citing the “significant rise in global energy prices” as the cause.
In a message shared widely on social media, the Pope called on citizens to embrace a new ethos of austerity. “We must rationalise energy, electricity, and water,” he stated. “Anything you can do without or postpone, you should do”. He warned against “extravagance and ostentation”, explaining that with 80% of Egypt’s petroleum used to generate electricity, every act of conservation helps keep the national grid operational.
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