Eilat Port to shut down over tax debts amid Houthi threat: Reports

Eilat Port is set to shut down on Sunday after the Eilat Municipality seized its bank accounts due to unpaid municipal taxes exceeding NIS 600,000, Globes reported.

The port, which has been operating at limited capacity since the start of the genocide in Gaza and threats to Red Sea shipping by the Houthis, now faces a complete halt in activity.

The shutdown is expected to impact the 'Israeli' Navy, which has used the port since the genocide began, as well as operations of the Europe Asia Pipeline Company (EAPC) and the export of potash from ICL’s Dead Sea Works.

While port officials initially denied plans to close, a letter from the National Emergency Authority obtained by Globes confirmed the details, citing financial debts and the seizure of all bank accounts. The Shipping and Ports Authority has notified that the port will cease all activity, including the use of tugboats and logistical support services.

The Ministry of Transport has called an emergency meeting with relevant stakeholders in an effort to prevent the closure.

Eilat Port, operated by the Nakash brothers since 2012, once handled 50 percent of all vehicle imports into Israel. However, since the war began, port revenue has plummeted, dropping from NIS 212 million in 2023 to just NIS 42 million in 2024.

Only six ships have docked there in the first half of 2025.

Despite prior financial assistance from the government, including deferred fees and a state-backed loan guarantee, officials are now critical of the port's failure to settle its debts with the municipality.

The government has argued that, given the port's privatized status and its decade of profits, the owners must now bear the financial burden.