Britain was humiliated by international opinion and made to look foolish
There is no doubt that after the Suez crisis, Britain’s world importance had been undermined, it had been humiliated at the U.N general assembly and its dependence on the USA was now completely evident. Socialist Russia now seemed triumphant and omnipotent over Western Europe while the former might of the British economy now looked weak, impotent and had plunged into a recession. Eden’s domestic government fell within months leaving the high moral position, so pivotal in Britain’s foreign policy in tatters. The commonwealth too was now more distant than ever, furthering Britain’s mortification and loss of prestige. Overall, Britain’s assault on Egypt was almost universally condemned throughout the global community resulting in a formerly revered and prominent country in a state of disarray and humiliation.
Immediately after the invasion the value of sterling started to decrease rapidly due to essential oil supplies not being able to get through the Suez Canal. This meant Britain had to use 15 percent of its gold reserves (279 million dollars worth) to keep the pound’s value from plummeting even lower and causing widespread inflation throughout the country. To counter this economic catastrophe Britain tried to obtain capital from the international monetary fund but found that the USA’s dominance of this organisation made it impossible. Eisenhower had prevented Britain accessing the necessary funds unless a cease-fire was signed. This came as a devastating blow to British prestige as now the special relationship between the two countries was severely damaged, Britain was made to look foolish and the USA now seemed vastly superior both economically and politically.