Israel’s Eilat Port Closes July 20 Amid Debt, Security Risks

The Port of Eilat, Israel's southernmost port, is set to cease all operations on Sunday, July 20, due to a severe financial crisis caused by mounting municipal tax debts and a near halt in port activity amid ongoing security threats. The Eilat Municipality has seized the port's bank accounts over unpaid taxes estimated at NIS 600,000-700,000 monthly, forcing closure despite efforts by the Ministry of Transportation to intervene. The shutdown is linked to repeated Houthi attacks and a naval blockade in the Red Sea, which have crippled maritime traffic and significantly reduced port operations since the outbreak of the war following the October 7 Hamas attacks. This closure poses a strategic threat by disrupting logistical support for the Israeli Navy and impacting exports, including potash from ICL's Dead Sea Works and operations of the Europe Asia Pipeline Company. Officials, including the Ministry of Transportation's director general, are convening emergency meetings with government ministries and the Eilat Municipality to explore measures to prevent or mitigate the closure. The port's shutdown also risks long-term damage to its infrastructure and operational continuity.