The canal's importance was reaffirmed in March, when the massive cargo ship "Ever Given" got stuck there, causing a major commercial disaster.
By AARON REICHUpdated: APRIL 25, 2021 16:14Ships are seen at the entrance of the Suez Canal, Egypt March 26, 2021.(photo credit: MOHAMED ABD EL GHANY/REUTERS)
April 25 marks the 162nd anniversary of the beginning of the construction of what would become one of the world's most strategically and commercially important waterways: Egypt's Suez Canal.Beginning in 1859 on the shores of what would later be known as Port Said, the endeavor was sparked by a need to create a shorter trade route that would allow ships to avoid having to navigate around Africa.However, it faced mounting difficulties, most notably skepticism about the project as a whole – as well as being constantly opposed by the British government.In order to finance the massive project, the Suez Canal Company had to sell shares overseas, but they sold poorly in Britain.Thanks to the help of the Cattaui banking family and the Rothschilds, however, the shares were promoted throughout Europe and the French shares sold out rather quickly.The project was immense, taking about 10 years to complete. Numbers vary regarding how many people died in the process, as well as how many worked on the canal itself, with some estimating under 1,000 deaths while Egypt's 2nd president Gamal Abdel Nasser claiming 120,000 and some placing the number of laborers, much of them forced, at over 1.5 million.When it finally opened in November 1869, the canal had even more hurdles to overcome, specifically entering poor financial straits. But its effect on global trade was nearly instantaneous, and even caused a major economic crisis in the UK due to changing trade routes.Eventually, Britain would properly invest in the canal, with then-prime minister Benjamin Disraeli purchasing £4 million of shares in 1876, worth between £235m. and £480m. ($327m.-$669m.) in 2019. The money was obtained from the Rothschilds. As noted in the Rothschild Archive, legend says the loan was made on a gentleman's agreement without documentation, though the funds were repaid within five months. However, this did cause Disraeli to be accused of undermining the British constitutional system as he did not have Parliament's consent when purchasing the shares.Eventually the canal's importance grew and the UK took over. However, this changed in 1956 when Nasser nationalized the canal. This sparked the Suez Crisis – known is Israel as the Sinai War – with the UK, France and Israel invading Egypt that October. The canal continued to play an important role in regional affairs, with the ongoing barring of Israeli access to the canal and later blocking the Straits of Tiran being cited as one of the causes of the 1967 Six Day War.Since then, the canal remains one of the most vital waterways in the world. This importance was recently reaffirmed in March, when the massive cargo ship Ever Given ran aground in the canal and blocked off all passage, causing a major commercial disaster. Stuck for nearly a week, the economic damage was estimated to be in the billions with much of the global supply line brought to a halt.
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