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 to gather intelligence from British bases in Cyprus. The British relationship with the United States did not suffer lasting consequences from the crisis. "The Anglo-American 'special relationship' was revitalised immediately after the Suez Crisis", writes Risse Kappen. The United States wanted to restore the prestige of its closest ally and thus "The two governments...engaged in almost ritualistic reassurances that their 'special relationship' would be restored quickly". One example came with Britain's first Hydrogen bomb test Operation Grapple which led to the 1958 U.S.–UK Mutual Defence Agreement. Six years after the crisis, the Americans amazed the British by selling them state-of-the-art