The Suez Crisis of 1956 stemmed from the Egyptian nationalization of the Suez Canal.
After the United States and Great Britain withdrew financial support for the Aswan High Dam on the Nile, Egyptian leader Gamal Nasser nationalized the Suez Canal in order to pay for the dam project. The Suez Canal was jointly financed by France and Great Britain; those nations would lose control and money if the Egyptian government took control of the canal. While colluding with Israel, the two European nations launched an attack on the canal zone called Operation Muskateer.
The Israeli army rolled through the Sinai with little opposition, drawing Egyptian attention towards them. Then the French and British struck; aerial attacks destroyed the Egyptian air force on the ground, while troops were landed by air and sea. Through the Europeans quickly took control of the canal, Nasser managed to order the scuttling of several ships to block the canal.
American President Eisenhower was very upset that the British and French governments acted in such a manner, without consulting other NATO allies. Eisenhower referred to the Suez Crisis as "The Great Stupidity". The uprising in Hungary had already increased tensions between NATO and the Warsaw Pact and Eisenhower did not want another crisis to deal with.
The United Nations did arrange a cease-fire and occupied the Suez Canal and Sinai Peninsula after the Europeans and Israelis withdrew. Lester Pearson, before he became the prime minister of Canada, did led the negotiations and was awarded the Nobel Peace Prize for his efforts in 1957.
Though his military was savaged in the fighting, Nasser came out as a hero of the Arab world for standing up to the European powers. The crisis also led to the fall of the government of Anthony Eden in Great Britain.