In July 1956, Egyptian President Gamal Abdel Nasser nationalized the Suez Canal Company, which had been owned and operated primarily by British and French shareholders and controlled a vital global shipping route connecting the Mediterranean and Red Seas. In response, Britain, France, and Israel secretly coordinated a military plan (the existence of this secret coordination, known as the Sèvres Protocol, was denied by the involved governments for years afterward): Israel would invade Egypt's Sinai Peninsula, providing Britain and France a pretext to intervene militarily, ostensibly to separate the combatants and protect the canal, but actually to retake control of it.
The military operation itself proceeded largely as planned in late October and early November 1956, with British and French forces successfully securing much of the canal zone. The operation collapsed diplomatically and financially rather than militarily: the United States, under President Eisenhower, was not informed of the plan in advance and reacted with considerable anger, both at the secrecy and at the operation's timing (which coincided with and diverted global attention from the Soviet invasion of Hungary, undermining Western moral authority on that issue). The US applied severe financial pressure, including threatening to decline support for the British pound sterling amid a currency crisis and blocking International Monetary Fund assistance, forcing Britain into a humiliating withdrawal within days, with France and Israel following suit shortly after. The crisis's aftermath led directly to British Prime Minister Anthony Eden's resignation and is widely regarded by historians as marking the definitive, unmistakable end of Britain's and France's status as independent global powers capable of acting militarily without American support, accelerating both countries' post-war retreat from empire and cementing the United States' position as the unambiguous leader of the Western alliance.