Egypt’s position in the ongoing 2026 Iran-related regional conflict centers on Cairo’s efforts to maintain neutrality while facing spillover risks from Iranian proxies and direct actions. A July 29 drone strike on ships at the Damietta port, widely attributed to Iranian capabilities, marked the first such incident on Egyptian territory during the hostilities and disrupted LNG operations. Egypt has since intensified diplomacy, with President Sisi urging Iranian de-escalation in meetings at the BRICS summit and with U.S. officials, while Foreign Minister Abdelatty coordinates with Gulf states to protect Red Sea navigation and the Suez Canal from Houthi threats. These developments, alongside Egypt’s mediation role between Washington and Tehran, shape trader assessments of whether further targeting occurs before any resolution deadline.