Final week, Houthi rebels in Yemen seized management of the Bab al-Mandab Strait, the southern gateway to the Crimson Sea. The whole world is watching these occasions with concern, as this is likely one of the most significant financial transport lanes. Earlier than the struggle, 10% of worldwide oil commerce handed by way of the strait. Mixed with management over the Strait of Hormuz, Iran successfully controls the transit of about 35% of the world’s oil.
Nonetheless, whereas the world focuses on the most recent Houthi takeover, Eilat Port has been struggling for practically three years from the blockade imposed by the Houthis within the strait. In 2023, some 150,000 autos arrived on the port, whereas in 2024 and 2025, not a single automobile arrived. This example started after the Houthis hijacked a ship en path to Israel and following sporadic reviews of assaults on oil tankers alleged to be heading to the nation.
This actuality continued by way of the primary two months of 2026. Nonetheless, port cargo reviews revealed by the Administration of Delivery and Ports point out {that a} shift has since occurred. In March, some 5,900 autos had been shipped to the port and one other 11,000 had been added between April and June, with 4,400 autos arriving in July. These figures had been achieved by way of artistic options, together with unloading cargo at Aqaba Port in Jordan.
Eilat Port has continued to work on opening new routes and corridors. Nonetheless, the Houthi takeover of the strait raises issues that the state of affairs may regress. Ought to a complete blockade of the strait be imposed, even the ships presently managing to go could be unable to take action.
Regardless of the restoration over latest months, Eilat Port’s figures stay removed from routine ranges. Between January and July 2023 (pre-war), roughly 111,000 autos arrived on the port, in contrast with about 93,000 at Ashdod Port and 44,000 at Haifa Port. In distinction, throughout the identical interval this yr, solely about 21,000 autos arrived in Eilat – a fall of roughly 90,000 autos in comparison with the identical interval final yr. In the meantime, about 60,000 autos arrived at Ashdod and Haifa.
So whereas Eilat Port was obtained 44.4% of Israel’s automobile imports previous to the struggle, it presently accounts for under about 15%. The federal government just isn’t notably involved about this, and the problem infrequently comes up for dialogue.
Will a brand new tender even be required?
Final June, the Knesset Financial Affairs Committee held a dialogue on the Eilat Port concession, which is ready to run out in January 2028. The difficulty of the blockade on the port additionally got here up through the proceedings. “We can’t preserve a port that’s shut down; it’s a shame for us,” mentioned MK Oded Forer. “And to prime all of it off – negotiations are underway relating to the Strait of Hormuz, but there is not even an Israeli demand regarding the Houthis. The Israeli authorities has given up on this metropolis. it has given up on the port. We face a blocked transport route, which is a strategic-level downside. How can they put a closed port out to tender? What are they providing – a port that can not be operated? It’s a farce, and no person cares.”
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It additionally emerged through the dialogue that Minister of Transport Miri Regev was barred from coping with the port tender attributable to a battle of curiosity. Adv. Amit Hadad represents each Regev and the Nakash brothers, the port’s homeowners. Consequently – and after two months through which no authorities minister has addressed the Eilat Port difficulty – duty for the matter was transferred in July to Minister of Finance Bezalel Smotrich.
uring that very same assembly, Yehuda Balulu – representing the Eilat Port staff’ committee – mentioned that the employees possessed info indicating the operator had failed to satisfy the circumstances of the choice. Subsequently, he argued, preparations should be made for a brand new tender or another answer to stop a administration vacuum. Conversely, Eilat Port CFO Batia Zafrany mentioned that of the three circumstances set for extending operations, the corporate had met two, whereas the third- creating container operations – was not economically viable. She added that the corporate needs to proceed working the port.
Thus, because the port grapples with a blockade that restricts operations on one hand and the looming menace of a brand new tender on the opposite, Israel should now wait to see how the Houthi takeover performs out and whether or not the progress the port has already achieved will probably be in useless.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on September 17, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
