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Why Eilat Port Matters

Strategic Role:

• Israel¡¯s only Red Sea port (3rd largest after Haifa/Ashdod).

• Critical for vehicle imports and potash exports (10% of national trade).

• Key Suez bypass route during disruptions.

Collapse Triggers:

• Houthi Blockade: 0 cargo operations since February 2025; only 6 vessels called in 2025.

• Financial Ruin:

• $82M debt (per Israel Tax Authority).

• Bank accounts frozen over unpaid municipal taxes.

Immediate Impacts

Trade Disruption:

• Vehicle imports: Must reroute to Haifa/Ashdod (+5¨C7 days transit).

• Potash exports: Lose direct Asia access; likely shift to Jordan¡¯s Aqaba.

Last-Ditch Efforts:

• Israeli Transport Ministry holds emergency talks with private operator.

• Unclear if 11th-hour deal can avert closure.

Broader Consequences

Geopolitical Shift:

• Strengthens Jordan¡¯s Aqaba Port as regional Red Sea hub.

• Houthi Warning: Attacks will continue until Gaza ceasefire.

Economic Toll:

• $300M/year loss to Israel¡¯s southern economy (Eilat Chamber of Commerce).