In 1952, a military coup overthrew the Egyptian monarchy. After a period of upheaval, former lieutenant colonel Gamal Abdel Nasser became president in 1954.
Nasser adopted a 'neutralist' position in the Cold War, open to ties with both the West and the Soviet Union, and this led the US and UK to withdraw funding for the Aswan Dam project.
Nasser retaliated by taking the Suez Canal, which was partly controlled by the British and French governments, into full state ownership. He also announced plans to close the canal to Israeli shipping.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Britain, France and Israel initially attempted to find a diplomatic solution, but realised that Nasser wasn't going to compromise. So they drew up proposals to retake control of the canal by force.
The plan was to combine an Israeli attack through the Sinai Peninsula with Anglo-French air raids, followed by an invasion by British and French ground troops.
This plan, which was put into action at the end of October, was initially successful and quickly achieved most of its military targets. But the unexpected nature of the invasion prompted a large public backlash in Britain.
The US also opposed it and started to sell British government bonds. As a result, the UK government was forced to declare a unilateral ceasefire within days.
This humiliating climbdown led to the resignation of Prime Minister Anthony Eden. Longer term, it provided a major boost for Arab nationalism, encouraging future dictators across the region to seize power, including Muammar Gaddafi in Libya. It also led to the withdrawal of France from Nato for four decades.
-
Pension vs property: which option provides the best income for your retirement?News With the cost of a comfortable retirement on the rise, future retirees need to weigh up which strategy offers the best returns. But is a pension a better bet than property?
-
The industry at the heart of global technologyThe semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
