ABSTRACT
Suez is the most important canal in the world, providing the only waterway through the World Island. In 1875, Britain acquired a half share of the Suez Canal Company and in 1882, largely to guarantee its control of the canal, occupied Egypt. The position of Britain was recognised internationally by the Constantinople Convention of 1888. When Egypt nationalised the Canal Company in 1956, the UK and France, in collusion with Israel, declared war on Egypt in order to protect their interests, but the hostilities were opposed by both superpowers and the conflict ended quickly. Due to the lengthy closure, the infrastructure of world shipping reorganised itself with the construction of the SUMED pipeline which provided an alternative to the Suez Canal and the development of the Cape route. However, the development of the Caspian Basin oil fields will produce significant west-to-east oil movements through the canal and its geopolitical importance is therefore likely to be enhanced.
