Egypt’s government has mandated that shops, restaurants, and cafes close by 21:00 local time (19:00 GMT) each night for the next month, starting Saturday, as part of emergency efforts to address a deepening energy crisis. The move comes as the country grapples with soaring energy prices driven by the ongoing conflict in the Middle East and the near-total halt of shipping through the Strait of Hormuz, a critical artery for global oil and liquefied natural gas (LNG) trade.

Energy Crisis Sparks Immediate Measures

The government’s ‘exceptional measures’ include dimming street lights and roadside advertising, as well as requiring many workers to work from home one day a week in April. These steps aim to reduce energy consumption and ease the strain on Egypt’s fuel imports, which have become increasingly volatile due to the geopolitical tensions.

Egypt’s Prime Minister Mostafa Madbouly stated that the country’s petrol bill had more than doubled from January to $2.5 billion in March, a sharp increase attributed to the war’s impact on global oil prices. The government has already raised fuel prices and public transport costs to mitigate the financial fallout from the crisis.

Hotels and tourist attractions are exempt from the energy-saving measures, as tourism accounts for approximately 10% of Egypt’s economy. However, several Cairo hotels, including the Marriott and Cosmopolitan, have taken independent steps to prepare for potential power shortages by acquiring backup generators and keeping their restaurants open for guests despite the new restrictions.

Impact on Daily Life and Economy

The temporary closure of shops and restaurants is expected to disrupt daily life and affect consumer spending; While most employees will work from home one day a week, essential workers in sectors like healthcare, education, and manufacturing will remain unaffected. This measure highlights the government’s focus on reducing non-essential energy use to stabilize the economy.

Egypt’s reliance on imported fuel has made it particularly vulnerable to supply shocks. The Strait of Hormuz. Through which around 20% of the world’s oil and gas supply passes, has seen most international shipping halt since Iran began threatening to strike vessels transporting goods. This has led to a sharp rise in global oil prices and raised concerns about potential knock-on effects on the cost of food, medicine, and other essential goods.

US President Donald Trump has criticized allied nations for not supporting efforts to escort ships through the strait, which remains a flashpoint for further escalation; some ships have passed through the strait since the conflict began, but many are linked to Iran, China, or India, complicating the situation further.

Future Steps and International Agreements

The Egyptian government has announced additional measures, including slowing down energy-intensive state projects and cutting government vehicle fuel allowances by nearly a third, as reported by Reuters. These actions reflect a broader strategy to limit the economic impact of the conflict on public finances.

Thailand recently reached an agreement with Iran to ensure safe passage for its oil tankers, signaling a potential shift in international shipping dynamics — However, such agreements do not immediately resolve the broader issues affecting global energy markets.

As the situation evolves. The Egyptian government faces mounting pressure to find sustainable solutions to the energy crisis. With shops and restaurants told to close early, the immediate focus is on reducing energy demand while exploring long-term strategies to diversify fuel sources and reduce dependence on imports.

The measures are part of a broader global response to the crisis, with other nations also grappling with the economic and energy implications of the conflict. For now, Egypt’s temporary policies aim to provide a buffer against further volatility in the short term.