The year 1840 also brings a political crisis between France, Russia and England because of France's support for Muhammad Ali, the ruler of Egypt.

Ali is a long-time ally of France; in 1829 he had given the Luxor obelisk, now standing in the Place de la Concorde, to France.

Lord Palmerston is convinced that the French will not fight, and sends a fleet to bombard Beirut and threaten Egypt.

The French cabinet is divided, fearing that France is not ready for war; the French army is already engaged in an expensive military conquest of Algeria.

The King makes it clear to Thiers that he wants peace.

Thiers offers to resign, but the King refuses his resignation, arguing that he wants the British to believe that France will fight.

When Thiers drafts a note to Britain warning that a British ultimatum to Egypt will upset the global balance of power, and he orders construction of a new ring of fortresses around Paris.

Palmerston does not attack Egypt, and the crisis ends.

The fortifications begun by Thiers during crisis will eventually be finished, and will become known as the Thiers wall, which will later become (and remain today) the city limits of Paris.

After the end of the crisis, tensions remain  between the King and Thiers.

Thiers drafts the King's annual address to the Chamber of Deputies, adding the line, "France is strongly attached to peace, but it will not purchase peace at a price unworthy of the nation and its King," and will not sacrifice the "sacred independence and national honor which the French Revolution had put into his hands."

Louis-Philippe removes this line from the speech, considering it too provocative to other European rulers.

Thiers promptly offers his resignation on October 29, and this time it is accepted.

A month later, he rises in Parliament to denounce the King's foreign policy, declaring that France has lost its influence in the Middle East, and has a duty to defend Egypt against Britain, and Turkey against Russia.