Israel’s Red Sea gateway, the Port of Eilat, is set to cease operations this Sunday following a financial standoff with local authorities and a sharp downturn in maritime activity. The Eilat municipality has frozen the port’s bank accounts over unpaid municipal taxes, accelerating its path toward shutdown, according to a report by Globes, a leading Israeli business outlet.
Once vital for vehicle imports and strategic military logistics, the port has seen a dramatic decline in traffic amid the ongoing Gaza conflict and persistent threats to regional shipping posed by Yemen’s Houthi rebels.
A letter from Israel’s National Emergency Authority confirmed that the shutdown will affect all services, including tug operations and logistical support for both the Israeli Navy and the Europe Asia Pipeline Company (EAPC). Exports of potash from ICL’s Dead Sea Works will also be suspended.
So far this year, only six ships have called at Eilat, with revenues plunging to unsustainable levels.
Despite earlier government support—including deferred port fees and state-backed loan guarantees—the port’s private operators, the Nakash brothers, are now under pressure to resolve outstanding debts. The Ministry of Transport has called an emergency meeting in an attempt to rescue what remains a strategically important, yet embattled, maritime asset.