Eilat: Israel's Ports and Shipping Authority announced that Eilat Port will suspend all operations starting July 20 due to an escalating debt crisis that has paralyzed the strategic facility. In an official memo, Israel's National Emergency Authority revealed that the shutdown was triggered after the Eilat Municipality froze the port's bank accounts over unpaid local taxes, making it impossible to maintain operations.
According to Anadolu Agency, the closure is seen as a significant step that could undermine Israel's maritime logistics in the Red Sea. The emergency authority has warned that the port's closure could halt logistical support for the Israeli Navy in the region, raising concerns about potential security gaps at a time of heightened regional tensions.
In June, the Israeli government approved an emergency grant worth 15 million shekels ($4 million) to help cover the port's debts, but this financial aid was reportedly insufficient to restore normal operations. Local reports indicate that revenue for 2024 has plummeted by nearly 80% due to a standstill in vehicle imports and other cargo shipments since the outbreak of the Gaza war in October 2023.
Additionally, on Tuesday, the Israeli army announced the interception of a drone launched from Yemen by the Houthi group targeting the port city of Eilat. The Houthis claimed responsibility for a dual drone attack, describing it as a 'successful simultaneous operation' that targeted both the Eilat port and a military site in the Negev region.
The incident underscores growing security risks in the Red Sea and southern Israel, adding pressure on the already struggling port, which has faced severe revenue losses due to maritime threats and repeated disruptions in shipping lanes. The ongoing conflict between Israel and Gaza has pushed Eilat's operations to the brink of bankruptcy and now to complete closure.
The Port of Eilat, Israel's southernmost port on the Red Sea, has historically served as a crucial gateway for trade routes bypassing Egypt's Suez Canal. However, since November 2023, Yemen's Houthis have intensified missile and drone strikes on Israel and targeted commercial shipping in the Red Sea, Gulf of Aden, and Arabian Sea in support of Palestinians in Gaza, where nearly 58,600 people have been killed in Israel's onslaught.