Egypt prepares for multiple scenarios amid regional uncertainty, energy market pressure: PM

CAIRO – 16 April 2026: Prime Minister Mostafa Madbouly said on Thursday that Egypt is preparing for a range of potential scenarios as regional uncertainty persists and pressure on global energy markets and financial flows continues.

Speaking during the Cabinet’s weekly meeting, Madbouly described the current regional landscape as marked by “a high degree of uncertainty,” adding that the government is treating the situation as “an unstable transitional phase.”

Paths of escalation and de-escalation remain in play simultaneously, making it difficult to predict the direction of developments in the coming period, Madbouly stated.

He noted that market sentiment has been highly volatile, shifting rapidly from deep pessimism to sudden optimism before returning to a wait-and-see mode, underscoring the continued instability of the broader environment.

The US-Israeli war currently paused by a two-week ceasefire, subsequent regional escalation, and Tehran’s near closure of the Strait of Hormuz, through which a fifth of the world’s oil passes, have sent global energy prices soaring.

In response, Egypt has introduced a series of measures in recent weeks to curb energy consumption, including earlier shop closures, partial remote working arrangements, and reduced street lighting.

Additionally, the government has cut public spending and also raised fuel prices by up to 30%.

Energy import bill rose sharply from $1.2 billion in January to $2.5 billion in March, driven by surging global prices for fuel, petroleum products, liquefied natural gas, and crude oil, according to government figures.

During the meeting today, Madbouly said the government’s decisions since the onset of the crisis have played a key role in maintaining economic stability.

While early international assessments had suggested Egypt would be among the hardest-hit countries, more recent evaluations indicate a relative improvement, placing it among moderately affected economies, the prime minister said.

He attributed this shift to the government’s swift response and timely decision-making, noting that Egypt has gained recognition for its crisis management approach.

In this context, Madbouly pointed to recent remarks by the chief of the International Monetary Fund, who described Egypt as a model in taking sound measures during times of crisis.

He said this reflects the economy’s improved capacity to absorb shocks and strengthens prospects for continued support under the country’s financing program.