The Suez Canal is a shipping shortcut that connects the Mediterranean Sea to the Red Sea. It is one of the most important trade routes in the world, handling about 20% of global trade.
The Egyptian government under Nasser viewed the canal as a symbol of Egyptian sovereignty, and they believed that it should be owned and controlled by Egypt. The nationalization also represented a rejection of Western imperialism and a desire for greater economic independence for Egypt, by increasing the Egyptian state's revenues.
The nationalization of the Suez Canal triggered the Suez Crisis, a conflict that involved several countries and led to the outbreak of the Suez War.