Economic history of the United Kingdom once the territories gained independence and were free to negotiate their own trade agreements. Although the '50s were overall a time of great prosperity for Britain, the Suez Crisis of November 1956 precipitated a financial crisis and a run on Sterling which underlined how fragile post-war British finances were. The tripartite invasion of the Suez Canal Zone by Britain, France and Israel following Egypt's nationalization of the canal (before then majority owned by the British government) was a disaster for British prestige and the economy. The United States and the United Nations came out firmly against the occupation, which caused
Suez Crisis fervour was the role Britain had played in the creation of Israel. As a result, the actions of the Egyptian government began to mirror those of its populace and an anti-British policy began to permeate Egypt's relations with Britain. In October 1951, the Egyptian government unilaterally abrogated the Anglo-Egyptian Treaty of 1936, the terms of which granted Britain a lease on the Suez base for 20 more years. Britain refused to withdraw from Suez, relying upon its treaty rights, as well as the presence of the Suez garrison. The price of such a course of action was a steady escalation