Eilat Port appeals to U.S. and Egypt to help end Houthi blockade of Suez Canal
The port’s management hopes Cairo’s economic losses and Washington’s influence will drive regional action.
Despite the declaration of an end to the war and the announcement of a ceasefire, the Port of Eilat has yet to return to normal operations, as the Houthi threat remains unresolved. Although the Houthis have stated that as long as the ceasefire agreement between Hamas and Israel is upheld they will refrain from firing on Israel, they have not committed to halting their attacks on international shipping through the Suez Canal.
The Houthis have previously warned that any shipping company moving vessels through the canal without their authorization would be considered a target, anywhere in the world, even far from the Middle East.
Since early 2024, European shipping companies have avoided the canal entirely. Only Russian and Iranian vessels are allowed to transit, on the condition that they are not carrying cargo to Israel. Chinese ships occasionally pass through by using creative methods such as flag changes or risk payments to local intermediaries.
The Suez Canal, one of Egypt’s most vital economic assets, generated $8 billion in 2022 and $10.25 billion in 2023. But in 2024, revenues plunged to just $3.99 billion. According to Arab sources, Egypt lost about 60% of its canal income during 2024–2025, a devastating blow, given that nearly one-third of Egypt’s budget previously depended on this revenue stream.
The International Monetary Fund has warned that the sharp decline poses a significant threat to Egypt’s fiscal stability and urged the government to diversify its income sources. Cairo has since introduced tax reforms and subsidy cuts on fuel, electricity, and food, while securing billions in support from Gulf states to offset the losses.
By the end of 2024, Egypt managed to report a budget surplus of $13 billion, achieved largely by setting a surplus target before interest payments on its debt as part of an emergency stabilization plan. While these steps have improved investor confidence, Egypt continues to face high inflation, heavy debt, and an ongoing threat to one of its main revenue lifelines.
The Port of Eilat hopes that coordinated pressure from Egypt and other Arab nations will ultimately persuade the Houthis to cease attacks on the canal and allow maritime traffic, including to Israel, to resume safely.
Since the start of the crisis, the Israeli government has transferred NIS 15 million to the Port of Eilat, part of which was used to pay debts to the state and property taxes to the Eilat Municipality. The Histadrut labor federation has also provided emergency loans. But port officials stress that their goal is not just survival, but a return to full operations and profitability.
Since the beginning of 2024, European ships have not approached the Suez Canal. Only Russian and Iranian ships are allowed to pass through it with the understanding that they are not transporting goods to Israel. Chinese ships also manage to pass through the canal from time to time by finding solutions such as changing flags or paying and taking risks.
The Suez Canal generated revenue for Egypt of about $8 billion in 2022, and in 2023, revenue jumped to $10.25 billion. However, in 2024, revenue dropped to only $3.99 billion. Last summer, Arab sources reported that Egypt lost about 60% of its revenue from the Suez Canal in 2024-2025. This is a dramatic loss, since before the war, almost a third of Egypt's budget depended on revenue from the Suez Canal. The Suez Canal was a significant and stable source of revenue for Egypt for years. The International Monetary Fund warned that the decline in revenue from the canal poses a significant challenge to Egypt's revenue and that it must create a balanced budget and find a way to reduce dependence on foreign revenue. The recommendation led the Egyptian government to implement a reform that, among other things, included improving the country's tax collection system and reducing subsidies for fuel, electricity, and food.
In addition, Egypt received billions of dollars in support from the Gulf countries, among other things to cope with the loss of income from the Suez Canal.
