Egypt has warned that Israel will face serious consequences if it attacks Rafah, but its options are constrained by economic considerations, The Gaza conflict has placed Egypt s President Abdel Fattah el Sisi in an uncomfortable position. He has been unable to exert much influence on the course of the conflict, beyond affirming his rejection of any mass resettlement of Gaza Palestinians in Egypt and working with Qatar on efforts to broker a hostages-for-prisoners deal between Israel and Hamas. Egypt s already shaky economy has been hit by the Yemeni Houthi attacks on Red Sea shipping, which have resulted in a US$500 million drop in Suez Canal revenue, so far. There is no near-term prospect of a resolution of the conflict, and things may be about to get considerably worse if Israel goes ahead with a major assault on Rafah.