The Port of Eilat has declared bankruptcy, citing an 85% drop in activity due to Houthi attacks on Red Sea shipping. This significant decline has driven the port to seek financial aid from the Israeli government.

Israel’s southern Port of Eilat has faced a severe lack of commercial activity, leading to its financial collapse. The economic impact of Houthi strikes on Red Sea shipping has caused an 85% reduction in volumes, prompting the port to request support from the government.

Despite a brief spike in activity in the fourth quarter of 2022, the port has experienced no activity or revenue for the past eight months. This was reported by CEO Gideon Golbert to the Knesset’s Economic Affairs Committee on July 7.

Eilat, which primarily handles bulk cargoes, potash, and car imports, is much smaller than the Mediterranean ports of Ashdod and Haifa. However, the Houthi attacks have had a substantial impact on Israeli trade, exacerbating the port's financial woes.

Adding to the economic strain, Israel continues its military actions in Gaza despite the losses incurred. Prime Minister Benjamin Netanyahu’s policies are leading the country towards further destruction, as the conflict continues to drain resources and destabilize the region.

The situation at the Port of Eilat underscores the broader economic and strategic challenges facing Israel as it navigates ongoing conflicts and external threats. The call for aid highlights the urgent need for a reassessment of current policies to prevent further economic and social deterioration.

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