Egyptian foreign minister urges diplomacy, says ‘no military solution’ to Middle East conflict

Egyptian Foreign Minister Badr Abdelatty is urging the United States, Iran, and other regional actors to reject further military action. He says the conflict has no military solution because fighting would increase human suffering, disorder, and instability. Egypt is pressing for diplomacy instead.

The proposed path is a negotiated settlement. Egypt is working with Pakistan, Qatar, and Turkiye to help bring Washington and Tehran back to the negotiating table. Abdelatty points to the 14-point Islamabad Memorandum of Understanding as a possible framework. He also urges Iran to respond to a US counterproposal.

The situation remains tense, and Abdelatty warns that violence could erupt at any time. Egypt wants an agreement covering sanctions, freedom of navigation, and Iran’s nuclear file. The goal is a permanent political settlement that addresses the conflict’s main disputes rather than delaying them through another military escalation.

In this context, a diplomatic solution means the United States and Iran reaching a negotiated political agreement. It would replace continued military escalation with talks, compromises, and commitments that address the conflict’s central disputes. Egypt considers this necessary because force would create more suffering and instability.

The proposed settlement would include several connected issues. These are sanctions, freedom of navigation, and Iran’s nuclear file. The Islamabad Memorandum of Understanding, signed in June, provides a 14-point framework that could guide discussions. Iran has submitted a seven-point proposal, and the United States has replied with a counterproposal.

Diplomacy does not mean every side immediately gets what it wants. It means using negotiations to settle disagreements and establish rules that reduce the risk of renewed fighting. Egypt is encouraging Iran to respond and move the process forward. The intended result is a permanent political agreement covering all major elements.

Egypt is conducting mediation alongside Pakistan, Qatar, and Turkiye to help bring the United States and Iran back to negotiations. Their role matters because direct communication can become difficult when tensions are high. Mediators provide an additional channel for messages and diplomacy without replacing the parties themselves.

In this case, Egypt is encouraging Iran to respond to a US counterproposal. Abdelatty also identifies the Islamabad Memorandum of Understanding as a useful framework. Its 14 points could help organize talks and ensure that major subjects are considered, including sanctions, navigation, and the nuclear file.

A mediator cannot impose a settlement on either government. It can encourage each side to keep talking, clarify proposals, reduce misunderstandings, and identify possible compromises. The process remains fragile because Abdelatty says violence could erupt at any time. Continued mediation could nevertheless help move the parties toward a final political agreement.

Regional instability has caused Egypt at least US$20 billion in lost Suez Canal revenue, according to Abdelatty. The total economic damage is larger because higher energy prices have also strained the budget, increased inflation, and reduced people’s purchasing power. The article does not provide one combined figure for all these costs.

Egypt’s budget was based on an expected oil price of about US$65 per barrel. After the Iran war began on Feb 28, the price reached US$105 or more. That gap raises the cost of energy and puts additional pressure on government finances. Disrupted supply chains and fertiliser flows add further risks.

These pressures affect both the state and households. Egypt must manage a larger budget burden while people face more expensive goods. Even so, Abdelatty says the economy remained resilient. Real GDP growth reached 5.2 per cent in the first nine months of fiscal year 2025/2026, while core inflation eased to 14.1 per cent in September.

The Strait of Hormuz and the Red Sea are important routes for global supplies. Before the war on Iran, Hormuz carried about a fifth of global oil supply and around a third of seaborne fertiliser trade. Disruptions there can therefore affect countries far beyond the Middle East.

The mechanism is straightforward. If ships face interruptions, fuel and fertiliser reach markets less reliably or take costlier routes. Reduced oil availability can push energy prices higher. More expensive energy raises transport and production costs, while fertiliser shortages can reduce availability and increase the price of food. These effects pass through international supply chains.

Egypt is already feeling this pressure. Its budget was based on oil at about US$65 per barrel, but prices reached US$105 or more. Abdelatty also warns that disruptions to fertiliser flows threaten food security. Continued instability could keep inflation high and make essential goods harder to afford in many countries.

Egypt wants to become a logistics gateway linking Asia with Africa and the Middle East. Its ports, airports, roads, railways, power stations, and storage facilities could help companies move and hold goods closer to major markets. Cairo says it has invested US$600 billion in infrastructure over the past decade.

The mechanism combines transport and manufacturing. Egypt could store and distribute palm oil, grains, and petrochemicals, then send them into African, Arab, and Middle Eastern markets. The Suez Canal Economic Zone could also host Asian factories seeking access to African consumers. This would connect production, shipping, storage, and regional distribution in one location.

Abdelatty presents the plan as especially relevant while disruptions affect the Strait of Hormuz and the Red Sea. Egypt wants more Asian investment, trade, and tourism. If companies use these facilities, Egypt could strengthen supply-chain resilience and deepen South-South cooperation between Asia and Africa.

Higher interest rates make existing debt more expensive to service and new borrowing harder to afford. Developing and middle-income countries may already need loans for infrastructure, health, education, or climate-related needs. When rates rise, more public money goes to creditors, leaving less for development and emergency spending.

Expensive borrowing can also increase refinancing risks. Governments may need to borrow again to repay maturing debt, but higher rates make each replacement loan costlier. Limited access to concessional financing, which normally offers softer terms, removes a cheaper alternative. This can trap countries between cutting essential spending and taking on still more costly debt.

The article identifies this burden but does not provide country-level debt figures or explain specific reforms. Abdelatty, who is Egypt’s governor to the World Bank, is calling for changes to the global financial system. The broader aim is to make financing more manageable for developing and middle-income economies.