The 1956 Suez Crisis showed that Britain and France could no longer sustain a major imperial intervention against strong US opposition. The Suez Canal, opened in 1869, linked the Mediterranean to the Red Sea, and by the 1950s about two-thirds of Western Europe's oil passed through it. Britain became the largest shareholder in the Suez Canal Company in 1875 and occupied Egypt from 1882.
Gamal Abdel Nasser, one of the army officers who overthrew King Farouk in 1952, became the face of Arab nationalism. When the US and Britain withdrew their offer to fund the Aswan High Dam, Nasser nationalized the canal company on July 26, 1956, and said canal revenue would pay for the dam.
Britain, France and Israel secretly planned a response. Israel invaded the Sinai on October 29, and British and French forces then attacked Egypt, claiming they were separating the two sides. British, French and Israeli forces made rapid military gains, but Britain and France failed to regain lasting control of the canal and faced intense financial and diplomatic pressure. Eisenhower, angry at being kept in the dark and worried about pushing Arab states toward Moscow, put heavy financial pressure on Britain, and the Soviet Union threatened intervention.
The UN arranged a ceasefire and created the UN Emergency Force, the first armed UN peacekeeping force, to supervise the withdrawal. British Prime Minister Anthony Eden resigned in January 1957, and Nasser came out as a hero across the Arab world and the decolonizing world.
- Nationalization: Nationalization happens when a government takes ownership of a private company or industry, as Egypt did with the Suez Canal Company in 1956.
- Arab nationalism: Arab nationalism was the movement for Arab unity and independence from Western control, and Nasser was its most visible leader in the 1950s.
- UN Emergency Force: The UN Emergency Force was the first armed UN peacekeeping force. It went to Egypt in 1956 to supervise the ceasefire and the withdrawal of foreign troops.
Check yourself. Britain and France had the military advantage at Suez, so why is the crisis remembered as a defeat for them? US financial pressure, Soviet threats and UN action forced them to withdraw before regaining control of the canal. The crisis showed that they could no longer act as great powers against superpower opposition.