Final answer:
The founding of Israel aggravated existing conflicts between Israel and Egypt, sparking a surge in Arab nationalism led by Egyptian leader Gamal Abdul Nasser and leading to the Suez Crisis when Egypt nationalized the Suez Canal.
Step-by-step explanation:
The immediate effect that the founding of Israel had on Egypt was b. Aggravated existing conflicts. The establishment of Israel in 1948 immediately led to a series of conflicts with its Arab neighbors, including Egypt. The result was a surge in Arab nationalism, particularly under Egyptian leader Gamal Abdul Nasser. The Suez Crisis of 1956 further escalated tensions when Egypt nationalized the Suez Canal and closed it to Israeli shipping, prompting a military response from France, Israel, and the United Kingdom. The crisis underscored the Cold War dynamics as the United States and the Soviet Union were drawn into the regional disputes, with the Soviet Union offering support to Nasser and the United States increasing its role in the Middle East through financial and military assistance to various nations in an attempt to curb Soviet influence.