Yemen's Houthi Advance Threatens Eilat Port's Recovery

Israeli circles are expressing concern over the Houthi militia's escalating control of the Bab al-Mandab Strait, a vital global shipping lane, fearing it could further cripple the Eilat port's already struggling recovery. The Houthis have recently seized the city of Mokha and other areas along the Red Sea coast, strengthening their hold on Perim Island at the strait's heart. This advance grants them unprecedented influence over the strategic waterway, increasing their capacity to disrupt international maritime traffic.

The Bab al-Mandab connects the Gulf of Aden to the Red Sea, leading to the Suez Canal and the Mediterranean. It is a primary route for goods and energy from Asia to Europe. Shipping companies avoiding the area are forced to reroute around Africa via the Cape of Good Hope, a significantly longer and more expensive journey, ultimately impacting consumers through increased costs.

While the full impact of these global disruptions has yet to be felt in Israel, the Eilat port faces the prospect of further damage. The southern port was severely affected in late 2023 when shipping companies began avoiding the Red Sea, even detaining a vessel bound for it. Consequently, car imports, a major source of the port's activity, largely shifted to Haifa and Ashdod ports.

The crisis has been described as the worst in the port's history, with annual revenues of approximately 240 million shekels plummeting to near zero. Government support plans intended to offset additional costs for shipping companies have not been fully implemented. Meanwhile, the Ministries of Transport and Finance have stated they will not extend the concession for the port's operators at this time.