The nationalization announcement was greeted very emotionally by the audience and, throughout the Arab world, thousands entered the streets shouting slogans of support. US ambassador Henry A. Byroade stated, "I cannot overemphasize [the] popularity of the Canal Company nationalization within Egypt, even among Nasser's enemies." Egyptian political scientist Mahmoud Hamad wrote that, prior to 1956, Nasser had consolidated control over Egypt's military and civilian bureaucracies, but it was only after the canal's nationalization that he gained near-total popular legitimacy and firmly established himself as the "charismatic leader" and "spokesman for the masses not only in Egypt, but all over the Third World". According to Aburish, this was Nasser's largest pan-Arab triumph at the time and "soon his pictures were to be found in the tents of Yemen, the souks of Marrakesh, and the posh villas of Syria". The official reason given for the nationalization was that funds from the canal would be used for the construction of the dam in Aswan. That same day, Egypt closed the canal to Israeli shipping.

How did the Arab world react to news of the nationalization of the Suez Canal?