Port of Eilat to permanently shut down due to Houthi blockade

Israel is facing an imminent crisis as the Port of Eilat, its southernmost port, prepares to permanently shut down amid severe financial difficulties and ongoing military tension. The planned closure has been set for July 20th, 2025, a decision prompted by the impact of a crippling naval blockade imposed by the Houthi militia, which has aggressively targeted maritime routes in the Red Sea for over 21 months. Following the outbreak of violence after the October 7th Hamas attacks, the Houthis declared a blockade affecting vessels linked to Israel and its allies. Consequently, the Eilat port has seen a drastic reduction in its shipping activity, leading to substantial tax debts that the port has been unable to repay. This financial strain has culminated in actions taken by the Eilat Municipality, which has informed the port management of the seizure of all bank accounts due to unpaid debts. The upcoming closure signifies not only a blow to local employment—given its role as a significant employer in the area—but also presents logistical challenges for the Israel Navy and other businesses like the Europe Asia Pipeline Company (EAPC) that rely on the port for operations. The Shipping and Ports Authority has confirmed that starting next Sunday, the port's operations will completely cease. The Transportation Ministry's Director General, Moshe Ben Zaken, recognized the critical nature of the situation and has expressed intentions to take emergency action to try to prevent this shutdown. The port's ongoing viability is seen by local officials, including Eilat Mayor Eli Lankri, as essential for national security and economic stability, brandishing Eilat as the southern gateway to Israel that needs to remain open and secure. Given the escalating drone and missile attacks from the Houthis, the future of maritime trade in this region hangs in the balance, and it remains to be seen whether urgent government measures can avert the impending shutdown.