Israel’s only Red Sea port, Eilat, will officially cease operations on Sunday, July 20, following a dual crisis triggered by Yemen’s Ansar Allah naval blockade and mounting unpaid tax debts.

The Eilat Municipality froze the port’s bank accounts after it failed to pay over 10 million shekels ($3 million) in taxes, while the Shipping and Ports Authority confirmed that all activity will be halted due to the port’s deteriorating financial condition.

Once a vital alternative to the Suez Canal, Eilat served as a key hub for vehicle imports, military logistics, and energy exports. In 2023, the port handled 150,000 vehicles and welcomed 134 ships. In 2024, amid the blockade, no vehicles were unloaded, and only 16 ships docked.

The blockade, imposed by Yemen’s Ansar Allah (Houthis) in late 2023, was a response to Israel’s war on Gaza. Since then, Yemeni forces have targeted Israeli-linked vessels in the Red Sea, Gulf of Aden, and Arabian Sea, effectively paralyzing Eilat’s operations.

The shutdown is expected to impact the Israeli Navy, the Europe Asia Pipeline Company (EAPC), and potash exports from the Dead Sea Works. Port officials described the closure as a “victory for the Houthis” and a “loss for Israel’s economy”, with worker layoffs and equipment degradation already underway.

Despite a government-approved 15 million shekel bailout, the port’s operators—privatized since 2012—have been unable to recover. Only six ships visited Eilat in the first half of 2025.

The Israeli government has called an emergency meeting to explore alternatives, but officials admit that reversing the closure before Sunday is unlikely.

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