Houthis Seize Key Yemeni Port, Threatening Eilat's Port Operations

The Houthi movement in Yemen is nearing full control of the Bab al-Mandab strait after recently capturing the city of Mokha and additional coastal areas, solidifying their grip on the strategic waterway. This advance grants the group unprecedented influence over a vital global trade route. Concurrently, a recent oil pipeline bombing has halted oil flow for days, contributing to a rise in global energy prices.

In response to the escalating situation, the London-based Maritime Insurance Association has declared the Red Sea a war zone, ceasing insurance coverage for vessels transiting the area. This development is significantly impacting Israel's southern port of Eilat, which has been struggling to recover from a nearly three-year crisis.

Since the Houthi attacks began in late 2023, Eilat Port's annual revenues have plummeted from approximately 240 million shekels to near zero. As of March, the port handles an average of only one ship per month, unloading around 4,700 vehicles. Despite offering 90% discounts on fees and establishing a bypass route through Jordan's Aqaba Port, which brings in only 15-20% of normal vehicle volume, current operations barely cover the salaries of its approximately 100 direct employees and 20 security and cleaning staff.

Eilat Port management is reportedly seeking a state safety net and a ten-year extension of its concession. "It may be that in the new situation, even the limited activity that exists today will not be possible, we are concerned," a port statement read. "A shipping route to the State of Israel has never been closed. The State of Israel must focus on the Houthis to open the shipping route and must be part of the global coalition. This is not just Eilat's problem, we are in a campaign against Iran."

Meanwhile, Hazai Halawiya, Chairman of Israel Ports Company, urged leveraging the crisis for strategic change. "The blockade at Bab al-Mandab highlights the need to develop alternative trade corridors and land bridges," he stated. "Ports do not operate in a vacuum. When over 98% of Israel's trade relies on the sea, any disruption directly impacts the cost of living. Eilat must remain an integral part of the equation, and we must consider connecting the port to the national rail network."

Professor Yehoshua Krasna from Tel Aviv University's Dayan Center noted the international community's struggle to address the Houthi threat, citing their attacks on two Saudi ships in July that forced Riyadh to double the route and cost of oil exports. "The price of oil is rising due to the risk," Krasna added. "Oil pipelines solved the problem of maritime passage, but if the enemy knows how to hit them, they can do it again and again."