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This Wednesday, the Israel Ports and Shipping Authority announced that the Port of Eilat will be permanently closed on July 20th.

The Port of Eilat is Israel's only port on the Red Sea, holding significant strategic and trade importance, and serving as a crucial alternative route to the Suez Canal. As Israel's third-largest port, Eilat primarily handles vehicle imports and potassium fertilizer exports.

Ongoing conflicts between Israel and Palestine and continuous blockades of the Red Sea by Houthi forces, along with attacks on the Port of Eilat, have led to a halt in the port's operations, resulting in a severe financial crisis.

Only six ships have docked at the Port of Eilat this year, causing a sharp decline in port revenue. According to Israeli media reports, the local government has frozen the port's bank accounts due to unpaid municipal taxes. The Israeli government is urging the port's private operators to address the debt issues. The Ministry of Transportation has convened an emergency meeting in an attempt to prevent the closure of the Port of Eilat. It is currently unclear whether these efforts will enable the Port of Eilat to remain operational.

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