If you're going to run an extortion racket, you need the power to secure yourself against the inevitable challenges to your station. Egypt is in no position to handle and armed threat from the US, China, or even most European nations. Their government would be toppled and a sympathetic one would be installed who would lower shipping prices to something on the cheap side of fair.

A little history https://en.wikipedia.org/wiki/Suez_Crisis

The Israel, British, and French insurrection completely dominated the Egyptians. The US wanted to carry favors with Egypt to prevent them to falling into the communist sphere, so it applied a pressure campaign against the British and French that completely wrecked the European economies (and from which they never really recovered). It didn't work, Egypt did not become an American ally in any meaningful way, and instead the West lost control over one of the most important shipping lanes in the world, turning it into a corrupt mess where you have to pay for passage in cigarette boxes and bribes.

It was one of the biggest foreign policy fuck-ups of the USA, in my opinion.

Oh, wait, water's already a monopoly: https://en.wikipedia.org/wiki/Natural_monopoly

2. This isn't like a monopoly on water supply, because the ships don't have to go this way. To make the analogy work you'd have to add something like "everybody already has a well, but supplying tap water is cheaper than using a well". In such a situation, a water company that's maximizing profits would charge just a little bit less than using a well, and while it would annoy people it wouldn't harm them.

3. The government stops water companies from gouging for the good of the citizens, which isn't a factor here.

If we want to go with "everyone has suitable access to rainwater for important household use", then it changes the impact of the water company overcharging. It goes from despicable to mundane.

https://rurallivingtoday.com/homesteading-today/is-it-illega...