Breaking: Egypt Introduces War-Time Austerity Measures
How The Iran War Represents The Straw that Broke the Camel's Back for Egypt's Economy
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.
The Pope’s stark warning painted a picture of what could lie ahead if sacrifices are not made. He cautioned that having resources—even in a “limited manner”—is far preferable to their complete absence, noting that some nations already suffer from total power outages for hours each day. His message was clear: this is a moment for unity and collective action to preserve the nation’s stability.
Yet, the unprecedented nature of the 9 p.m. curfew on commerce has immediately drawn fire from the private sector. In a rare public rebuke of government policy, billionaire businessman Naguib Sawiris took to social media to plead with the Prime Minister.
“Mr. Prime Minister, my regards”, Sawiris wrote on his official X account. “I ask you to review this decision because of its negative impact on tourism, despite my full understanding of the current circumstances.”
Sawiris’ public intervention highlights the deep tension within the economic establishment. The government is betting that curbing consumption is less damaging than the alternative—raising prices further on an already burdened population—but Sawiris warns that the move could cripple the vital tourism sector, which was only beginning to recover from previous global shocks.
The government insists it had no choice. The cost of securing energy imports has exploded, with global crude prices jumping from $69 per barrel before the conflict to $108.50 today. To offset these pressures, the state recently raised fuel prices by up to 17%, pushing the price of diesel—critical for transport and agriculture—to EGP 20.5 per litre.
For ordinary Egyptians, the war feels increasingly close. Samira Abdou, a 61-year-old cleaner in Cairo, told Xinhua News Agency that the price of her minibus commute has already jumped. “We see the missiles on TV, and now the impact has reached us”, she said, echoing a sentiment of fear that the crisis will worsen.
While the government has stated that the consumption measures are temporary and will be reviewed after a month, the combination of a war-induced energy shock, the public dissent from a major investor like Sawiris, and the unprecedented call for sacrifice from the nation’s top religious authority paints a picture of an economy under siege.
The Iran War, it seems, has forced Egypt into a new and uncertain reality.