The Houthi military campaign is taking a significant toll on Israel. The use of low-cost Houthi missiles not only forces Israel to deploy million-dollar high-tech interceptors, but reports now suggest that Israel’s only Red Sea port may cease operations due to the ongoing Houthi siege.
Officials at the Eilat Port have warned the government that the port will completely shut down if financial support is not provided.
The port authorities are now seeking intervention from Prime Minister Netanyahu’s government to help cover mounting costs.
Reports indicate that the port has been losing 4 million shekels, or approximately $1,193,301, per month over the past 19 months. These escalating losses have become unsustainable for the port authorities.
Notably, the Houthis launched their military campaign against Israel in support of Gaza, after Israel began its military offensive in the Gaza Strip.
Remember that the Houthis had previously warned that they would continue attacking Israel until it halts its war in Gaza.
The Houthis have been launching missiles almost daily toward Israel, forcing millions of citizens to take cover in bunkers.
Meanwhile, the Houthi naval siege in the Red Sea targeting Israeli-linked ships has crippled Israel’s maritime trade routes.
Experts suggest that the Houthi military campaign is designed to economically drain Israel.
The Houthis are attempting to apply maximum pressure on Israel for a ceasefire in Gaza through daily missile attacks and by shutting down Israel’s sea routes.
According to Eilat Port’s Chief Executive Gideon Golber, the southern Israeli port has seen a 90 percent drop in activity since October 7.The Houthis have also launched missiles directly at the Eilat Port, but Israel claims to have intercepted all of them.
Earlier this month, the Houthis sank two Liberian-flagged cargo vessels, the MV Eternity C and MV Magic Seas.
In that attack, four seafarers were confirmed dead, and more than a dozen others are considered missing, with some presumed dead.
While the bulk of Israel’s maritime trade passes through the ports of Haifa and Ashdod on the Mediterranean, Eilat—Israel’s third-largest port—handles shipments from China, India, Australia, and other countries.
The Eilat Port primarily receives vehicle, oil, and cattle shipments. It is also used by Israel to export fertilizers and minerals.
According to data from the Israeli Ministry of Transportation, around 150,000 cars were unloaded at the port in 2023, and 134 ships docked.
In stark contrast, during 2024, no cars have been unloaded, and the number of ships docking there has dropped to just 64.The port authority has now turned to Israeli Economy Minister Nir Barkat, urging him to consider a national-level solution to keep the port operational.
The proposal involves cooperation between car importers from the Far East, Eilat Port management, and the government.
The port’s management is requesting that Minister Barkat issue a temporary import order requiring car importers from the Far East to import vehicles through Eilat, as was mandated until 2016. Additionally, the plan proposes that ships from the Far East bypass the Bab al-Mandab Strait by rerouting through the Suez Canal to avoid the Houthi blockade.
The cost of passage through the Suez Canal is approximately $800,000 per ship and would be shared among the importers, the Eilat Port, and the government.
In response to the Houthi threat, Israel and the United States launched a military campaign aimed at halting the attacks.
Israel and the U.S. have bombed Houthi ports and other strategic assets. However, these strikes have failed to stop the Houthis from supporting Gaza or from continuing their campaign.
Many Israeli officials have acknowledged that the military campaign has not succeeded in eliminating the threat to vessels heading to Eilat.
Despite the intense bombing, Houthi leaders have reaffirmed their commitment to supporting Gaza.
With the Eilat Port now on the brink of complete closure, experts say that the shutdown of such a strategic seaport would be a major international victory for the Houthis—one that no other adversary has ever achieved.
As Israel’s economic growth has sharply declined since the war began on October 7, what remains to be seen is whether Netanyahu will step in to rescue the port, in order to prevent what experts are calling a potential “embarrassment” for his government.
