How did the American Civil War create a cotton boom in Alexandria?

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The American Civil War (1861–1865) triggered a significant cotton boom in Alexandria by disrupting the global supply of the commodity. As the conflict led to a decline in North American cotton exports, Britain—a major consumer—turned to Egypt to meet its demand for long-staple cotton.1

This interruption of American supplies caused the price of Egyptian cotton to increase fourfold during the war years. Because Alexandria served as a vital commercial and banking hub for the export of this commodity, the surge in demand and prices brought substantial wealth to the city, fueling a cycle of growth and increasing its population. However, this prosperity was temporary; when peace returned and American exports resumed, cotton prices collapsed, leading to disastrous consequences for the Egyptian economy.123