What were the events that led to the Suez Crisis in 1956? How did it deal a final blow to Britain's self-image as a world power?

The Suez Crisis emerged out of Britain’s failed attempt to regain control of the strategically vital Suez Canal after Egypt nationalized it. However, the subsequent British-French-Israeli invasion met vocal condemnation from the USA and USSR. Britain’s ultimate withdrawal under international pressure shattered its pretensions of being a world power.

Specifically:

• Britain was still reeling from recent defeats in retaining control over Egypt and the loss of prestige by withdrawing forces in 1955 after years of violent unrest. The Suez gambit was ill-advised attempt to reassert its authority in the region.
• However, the American and Soviet superpowers strongly denounced the invasion at the UN. America also leveraged its financial sway over an indebted Britain to force a humiliating backdown.
• Seeing its long-standing influence as a great power ignored as Britain meekly bowed to rising Cold War superpowers highlighted its vastly diminished prestige and independence in world affairs after the ravages of WWII.
• Internationally condemned for naked imperialist aggression against nationalist Egypt, the Suez fiasco eroded any remaining moral authority flowing from Britain’s former status as the world’s preeminent power.

By misguidedly punching above its weight, only to meet global scorn and coercion forcing retreat, the 1956 Suez Crisis delivered a decisive symbolic blow that finished off Britain’s increasingly doubtful pretensions of ranking among the world’s dominant global powers guiding international politics. The sun had truly set on its empire.