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20 July 1882
Britain invades Egypt

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The European powers have large investments in Egypt, and since the ruling regime has gone bankrupt, they are taking two-thirds of Egypt's revenue to pay off its debts. In 1881, the Egyptian army officer Arabi Pasha leads a revolt, and the following year, Britain and France put on a show of strength by sending warships to Alexandria. Violent riots break out, and British ships bombard the city. Unrest rages all over Egypt, and the Suez Canal is under threat, along with other British investments.

Gladstone sends British troops to regain control. They restore order by force, but the situation remains dangerous and the British government dares not allow its troops to withdraw. It attempts to rescue Egypt's economy, but in 1885, the other European powers refuse to authorise an international loan. Britain will continue to occupy Egypt for 40 years, until 1922.

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