Global Energy Crisis — 2026-04-06
Iran War Energy Shock Darkens Cairo as Egypt Doubles Monthly Import Bill
Egypt has imposed mandatory shop closures at 9 PM on weekdays and dimmed street lights across Cairo as its monthly energy import bill more than doubled to $2.5 billion since the war began. Natural gas costs alone rose from $560 million to $1.65 billion monthly, and the Egyptian pound has fallen from 47 to 54 against the dollar since February 28. PM Madbouly warned of tougher austerity if the conflict continues into summer, when air conditioning could drive electricity demand up 30-40%.
Analysis
Egypt's energy import bill doubling to $2.5B/month while the pound falls from 47 to 54 against the dollar creates astagflation trap . If the war extends into summer, the 30-40% air conditioning demand spike could force industrial shutdowns that compound GDP losses for years. The Coptic Easter extension for shop closures shows the government is managing social stability hour by hour.
Egypt's energy import bill doubling to $2.5B/month while the pound falls from 47 to 54 against the dollar creates a