Overview

• President Trump has demanded toll-free passage for U.S. military and commercial ships through the Panama and Suez canals, citing America’s historical role in their creation.
• Secretary of State Marco Rubio has been tasked with pursuing this policy, but Panama’s President and the Panama Canal Authority have reiterated that toll policies are under their sovereign control.
• Egypt, which lost $7 billion in Suez Canal revenues in 2024 due to Houthi-related disruptions, has also rejected U.S. demands as a violation of its sovereignty.
• The U.S. military continues airstrikes against Houthi forces in the Red Sea region, aiming to secure shipping routes from ongoing threats.
• A BlackRock-led consortium recently acquired a $22.8 billion majority stake in Panama port operations, reshaping the commercial landscape at this strategic chokepoint.