The Suez Crisis, also known as the Second Arab–Israeli War, occurred in late 1956. This conflict involved Israel, the United Kingdom, and France invading Egypt and the Gaza Strip. The primary goals were to regain Western control over the Suez Canal and to remove Egyptian President Gamal Abdel Nasser, who had nationalized the Suez Canal Company. Israel aimed to reopen the Straits of Tiran,^[195] which Egypt had blockaded. The conflict escalated, but due to political pressure from the United States, the Soviet Union, and the United Nations, the invading countries withdrew. This withdrawal marked a significant humiliation for the UK and France and conversely strengthened Nasser's position.^[196]

In 1955 Egypt concluded a massive arms deal with Czechoslovakia, upsetting the balance of power in the Middle East. The crisis was triggered by Nasser's nationalization of the Suez Canal Company on 26 July 1956, a company primarily owned by British and French shareholders. Concurrently, Egypt blockaded the Gulf of Aqaba, affecting Israeli access to the Red Sea. In response, Israel, France, and Britain formed a secret plan at Sèvres, with Israel initiating military action against Egypt to give Britain and France a pretext to seize the canal. The plan included allegations of France agreeing to build a nuclear plant for Israel.

Israel invaded the Gaza Strip and Egyptian Sinai on 29 October, followed by the British and French ultimatum and subsequent invasion along the Suez Canal. Egyptian forces, although eventually defeated, managed to block the canal by sinking ships. The invasion's planning was later revealed, showing the collusion among Israel, France, and Britain. Despite some military successes, the canal was rendered unusable, and international pressure, particularly from the U.S., forced a withdrawal. U.S. President Eisenhower's strong opposition to the invasion included threats to the British financial system. Historians conclude the crisis "signified the end of Great Britain's role as one of the world's major powers".^[197]

The Suez Canal remained closed from October 1956 until March 1957. Israel achieved certain goals, like securing navigation through the Straits of Tiran. The crisis led to several significant outcomes: the establishment of UNEF Peacekeepers by the UN, the resignation of British Prime Minister Anthony Eden, a Nobel Peace Prize for Canadian Minister Lester Pearson, and possibly encouraging the USSR's actions in Hungary.^[198]

Nasser emerged politically victorious, and Israel realized its military capabilities to conquer Sinai without British or French support and the limitations imposed by international political pressure on its military operations.