I believe that it was the Suez Crisis of 1956,but here are some British veterans accounts of events leading up to this time,from the Canal Zone.
http://www.britains-smallwars.com/Canal/index.html
Yes, the Israelis were involved in 1956. Israel, Britain and France were upset about the nationalization of the Suez Canal.
Israel took the Sinai, and Britian and France were about to mount an invasion of Cairo when Eisenhower sent a fleet into the canal and broke it up. Everyone went home in a stalemate, but the canal was reopened.