Jerusalem (Caasimada Online) – Israel’s Red Sea port of Eilat will shut down indefinitely starting Sunday, marking one of the most significant economic casualties of the ongoing Houthi rebel attacks that have paralyzed shipping traffic and pushed this strategic southern gateway into financial ruin.
The port’s management was forced to announce the closure after the Eilat municipality froze its bank accounts over roughly 10 million shekels ($3 million) in unpaid debts, Israel’s Shipping and Ports Authority confirmed on Wednesday.
The shutdown delivers a significant win for Yemen’s Houthis—who have been targeting vessels in the Red Sea for more than a year and a half—and a substantial blow to the Israeli government, now facing fierce criticism for failing to protect this vital trade lifeline.
“This is a badge of shame for the government of Israel,” said Oded Forer, a member of parliament who chairs a committee focused on regional development, in comments to Middle East Eye. “The government allowed the port to collapse quietly.”
A strategic asset suffocated
Located on the Gulf of Aqaba, Eilat is Israel’s only port with direct access to Asian markets, serving as a crucial alternative route to the Mediterranean and the Suez Canal. Before the crisis, it was a thriving hub, mainly handling car imports.
But since the Houthis launched their campaign in late 2023—claiming solidarity with Palestinians in Gaza—global shipping giants have rerouted vessels around Africa, avoiding the Red Sea and Eilat altogether.
The financial toll has been devastating. According to figures reported by Israeli business daily The Calcalist, Eilat’s revenue plummeted by nearly 80 percent—from 212 million shekels ($63 million) in 2023 to just 42 million shekels ($12.5 million) in 2024.
The number of ships docking at the port dropped from 134 in 2023 to only six during the first five months of 2025. The once-booming business of offloading new vehicles—150,000 cars in 2023—has completely dried up.
“The closure will symbolise a victory for the Houthis and a loss for the Israeli economy,” a source at the port told The Calcalist.
Government accused of neglect
The crisis had been building for months, leading to growing criticism that Prime Minister Benjamin Netanyahu’s government failed to offer adequate support or a meaningful security response.
“For months, we warned of the collapse of the port of Eilat due to the failure to deal with the Houthi threats,” said Forer, of the right-wing Yisrael Beiteinu party. “Instead of acting resolutely to keep shipping lanes open… the government allowed the port to collapse.”
Last month, the government approved a 15 million shekel ($4.5 million) grant, officially designating the port as a “strategic national asset.” But officials at the port dismissed the aid as too little, too late.
They argued that the state expected a private company to shoulder the crisis alone for nearly two years.
“They threw us to the dogs,” a port source told The Calcalist. “It’s terrible.”
The closure also brings a steep human toll. The port’s workforce has been slashed from 113 to just 47 employees. Last month, the head of the workers’ union reported that the remaining staff were at risk of going without wages or even unemployment benefits.
The Houthi attacks form part of a broader regional upheaval sparked by the war in Gaza, which erupted after Hamas launched a deadly assault on southern Israel on October 7, 2023. Israel’s retaliatory campaign has since killed more than 40,000 people in the Palestinian territory, according to the Gaza health ministry, triggering a humanitarian disaster and escalating conflicts across the Middle East.
With its gates now set to close, the fate of the Eilat port stands as a stark reminder of the far-reaching economic consequences of an unresolved regional conflict.