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 of commission, concluding: In the aftermath of the Second World War, Britain was reassessing its role in the region in light of the severe economic constraints and its colonial history. The economic potential of the Middle East, with its vast oil reserves, as well as the Suez Canal's geo-strategic importance against the background of the Cold War, prompted Britain to consolidate and strengthen its position there. The kingdoms of Egypt and Iraq were seen as vital to maintaining strong British influence in the region. Britain's military strength was spread throughout the region, including the vast military complex at Suez with