Last week, Houthi rebels in Yemen seized control of the Bab al-Mandab Strait, the southern gateway to the Red Sea. The entire world is watching these events with concern, as this is one of the most vital economic shipping lanes. Before the war, 10% of global oil trade passed through the strait. Combined with control over the Strait of Hormuz, Iran effectively controls the transit of about 35% of the world's oil.
However, while the world focuses on the latest Houthi takeover, Eilat Port has been suffering for nearly three years from the blockade imposed by the Houthis in the strait. In 2023, some 150,000 vehicles arrived at the port, while in 2024 and 2025, not a single vehicle arrived. This situation began after the Houthis hijacked a ship en route to Israel and following sporadic reports of attacks on oil tankers alleged to be heading to the country.
This reality persisted through the first two months of 2026. However, port cargo reports published by the Administration of Shipping and Ports indicate that a shift has since occurred. In March, some 5,900 vehicles were shipped to the port and another 11,000 were added between April and June, with 4,400 vehicles arriving in July. These figures were achieved through creative solutions, including unloading cargo at Aqaba Port in Jordan.
Eilat Port has continued to work on opening new routes and corridors. However, the Houthi takeover of the strait raises concerns that the situation could regress. Should a total blockade of the strait be imposed, even the ships currently managing to pass would be unable to do so.
Despite the recovery over recent months, Eilat Port’s figures remain far from routine levels. Between January and July 2023 (pre-war), roughly 111,000 vehicles arrived at the port, compared with about 93,000 at Ashdod Port and 44,000 at Haifa Port. In contrast, during the same period this year, only about 21,000 vehicles arrived in Eilat - a fall of roughly 90,000 vehicles compared to the same period last year. Meanwhile, about 60,000 vehicles arrived at Ashdod and Haifa.
So while Eilat Port was received 44.4% of Israel's vehicle imports prior to the war, it currently accounts for only about 15%. The government is not particularly concerned about this, and the issue hardly ever comes up for discussion.
Will a new tender also be required?
Last June, the Knesset Economic Affairs Committee held a discussion on the Eilat Port concession, which is set to expire in January 2028. The issue of the blockade on the port also came up during the proceedings. "We cannot maintain a port that is shut down; it is a disgrace for us," said MK Oded Forer. "And to top it all off - negotiations are underway regarding the Strait of Hormuz, yet there isn't even an Israeli demand concerning the Houthis. The Israeli government has given up on this city. it has given up on the port. We are facing a blocked shipping route, which is a strategic-level problem. How can they put a closed port out to tender? What are they offering - a port that cannot be operated? It’s a farce, and nobody cares."
It also emerged during the discussion that Minister of Transport Miri Regev was barred from dealing with the port tender due to a conflict of interest. Adv. Amit Hadad represents both Regev and the Nakash brothers, the port's owners. Consequently - and after two months in which no government minister has addressed the Eilat Port issue - responsibility for the matter was transferred in July to Minister of Finance Bezalel Smotrich.
uring that same meeting, Yehuda Balulu - representing the Eilat Port workers' committee - said that the workers possessed information indicating the operator had failed to meet the conditions of the option. Therefore, he argued, preparations must be made for a new tender or an alternative solution to prevent a management vacuum. Conversely, Eilat Port CFO Batia Zafrany said that of the three conditions set for extending operations, the company had met two, while the third- developing container operations - was not economically viable. She added that the company wishes to continue operating the port.
Thus, as the port grapples with a blockade that restricts operations on one hand and the looming threat of a new tender on the other, Israel must now wait to see how the Houthi takeover plays out and whether the progress the port has already achieved will be in vain.
Published by Globes, Israel business news - en.globes.co.il - on September 17, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.