The Suez Canal was nationalized by Nasser partly because he needed the money from the Canal to go directly to the production of the Aswan Dam, which had been from the beginning a plan of Nasser's to improve Egypt domestically. The reason Nasser needed the money from the Suez Canal was because he had been denied financial aid from the U.S. and Europe because Nasser had received military support from the Soviets. This the Americans could not abide.
Why had Nasser received military support from the Soviets? Well, he needed to protect his country against the newly-formed Israel, which equally feared Egypt, because it was a strongly nationalist country with the diplomatic power to unite the Arab countries against the small Jewish state.
But why, particularly, the Soviets? Egypt took a stance of nonalignment, and believed that a country didn't have to choose sides between the US and the USSR. This didn't sit well with the American worldview in the 1950s. At all.
Nasser tried America first, in 1952, but in order for America to lend Nasser military equipment, it required him to sign a defense pact (MEDO), which would ally Egypt with the British and the US against the Soviets. Nasser declined immediately — the pact would give the British a reason to put their troops on Egyptian soil, something the Egyptians had been fighting against for a very long time. It would be seen as a diplomatic failure by the Egyptian people — Nasser was the second ethnic Egyptian to rule Egypt since the Pharaonic times (after Naguib, who didn't last long), and the whole Arab world was going through a phase of Arab nationalism (which stems from the fall of the Ottoman Empire and the Palestinian disaster created by Europeans — outsiders).
SO. Nasser then tried the French, who declined because Nasser had supported Arab nationalists in Northern Europe — the French were already worried about losing territory here.
SO, IN CONCLUSION — the reason Hungary's revolution against the USSR failed was because the Europeans were distracted by the Suez Crisis, which happened because Nasser needed money, which happened because he couldn't get money internationally, which happened because he was receiving military support from the Soviets, which happened because the French and Americans couldn't provide that support, which happened because there was a nationalist movement across the Arab world following the fall of the Ottoman Empire and the creation of Israel.
GEOPOLITICS IS SO COOL YOU GUYS
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