Sea attacks by the Iran-backed Houthi group in Yemen closed the Israeli Red Sea port of Eilat but enriched the Israeli state by diverting trade to a government-owned Mediterranean entrepot, the port's CEO told Iran International.
“The Houthis are making a mistake closing Bab al Mandab," The port's Iranian-born CEO Gidon Golber said.
"Yes it hurts Eilat, the smallest port in Israel, but what they’ve done is drive all the cargo to Ashdod and Haifa. So who wins? The Israeli government."
“We are a private sector port and 75% of the shareholders are American. Ashdod is a government port and Haifa is Indian. If the Houthis understood they’re helping the government, and harming mostly Americans, they would open the route.”
Gateway to the East
Israel’s gateway to the far east, Africa, India and Australia via the Red Sea, Eilat has seen all its cargo evaporate after the blockade which began in November 2023, shortly after the outbreak of war in Gaza.
The Houthis say they imposed the blockade to force Israel into a ceasefire with Iran-backed Hamas fighters in Gaza, but has since killed eight international mariners and attacked dozens of ships with no apparent connection to Israel or Western foes.
Eilat port in Israel’s southern coastal town is now only used by the military but was once the port for over half the cars coming to Israel along with cattle from Australia and various minerals.
“Ashdod and Haifa are now making more money, which is why Israel isn’t running to open the route,” said Golber. “It’s only harming the local Eilat economy.”
Of the port’s regular 120 workers, 90 are still employed there. “We didn’t fire workers - some went to Ashdod and others get a salary from the government,” Golber said.
Due to the high profit margin on cars in Israel, the 160,000 cars a year that came to Eilat, now go to government-run Ashdod Port and privately-run Haifa, which is mostly Indian owned.
“Even when the cargoes are in anchor, the ports earn money. So the Houthis did good for Israel,” Golber added. “The blockade is not slowing down logistics and is not driving prices up.”
Even though cargo now goes from the Far East via South Africa with a route of an extra 20 days, the end prices have remained the same as when using the Bab al Mandab route, Golber said.
Hopes for peace prevail
Golber is one of tens of thousands of Iranians living in Israel. He came when he was aged 1, having been born in Ahvaz.
“Iranians are very smart, cultured people, with a lot of tradition. We really hope there will be a peace treaty with Iran like it was before and trade will return like it was. If we have Abraham accords peace, it will be fruitful for the whole region,” he said.
In addition to the blockade, the Houthis have fired scores of missiles and drones to Israel since the outbreak of the Gaza war, most intercepted by air defense systems, though there have been some lapses.
Most recently, Eilat's Ramon Airport was shut briefly this month when a drone launched from Yemen struck the arrivals hall, Israel's Airports Authority said.
One man was killed in a drone attack on Tel Aviv which hit a residential building last year and a missile attack narrowly missed Israel's busiest airport in May.
Israel has responded with multiple airstrikes in Yemen, where the Houthis control large amounts of the territory after a civil war erupted in 2014. Local health authorities say the attacks have killed scores of civilians in recent months.
An Israeli attack earlier this month killed a gathering of senior leaders including the prime minister of the Houthi-led government.
Speaking at the Prime Minister's Award Ceremony, Barnea said: “We have won, and we will continue to win. Though we proved that Iran is penetrable, we are not letting up.
“The Mossad has very strong operational capabilities, even more imaginative and powerful than before — especially inside Iran and even in the heart of Tehran.”
At the ceremony, Mossad received this year’s honor in recognition of its recent operations. Among them was the so-called “beeper operation” in Lebanon, in which pager devices used by Iran-aligned Hezbollah members exploded simultaneously.
Another operation cited involved the establishment of a covert drone base inside Iran, which Israel said was used to destroy missile launchers prepared to fire following Israel’s June 13 strikes.
“We will continue to build and strengthen our capabilities in Iran, to keep our eyes open from within Iran on what is happening behind closed doors, and we will not allow ideas that could endanger our security to grow,” he said.
Since the June war, over 700 Iranians have been arrested on charges of spying for Israel with at least nine given the death sentence already.
Inside Israel, dozens of Israelis have been arrested on allegations of spying for Iran since the beginning of the Gaza war in 2023, some of whom involved in plots to kill top military and political leaders in the country.
“The enemy used negotiations as a cover for deception and betrayed diplomacy by starting the war,” Mousavi said.
He said Iran has never initiated war and sees diplomacy as the best way to resolve disputes, but argued that the armed forces had given a strong response to the United States and Israel.
Moscow supports stronger cooperation in both economic and defense fields, the Russian minister said in return.
Pezeshkian stresses partnership
Iran is prepared to expand cooperation with Moscow, President Masoud Pezeshkian said in a separate meeting with Tsivilev.
“No barrier stands in the way of Iran-Russia cooperation, and the model of successful cooperation between independent countries like ours will prove that the era of unilateral powers has ended,” Pezeshkian said.
He called joint projects proof that sanctions have not obstructed Tehran. “Growth can be achieved without reliance on unilateral powers,” Pezeshkian added, saying that agreements in transport, energy, and power generation will move forward if ministers and expert teams accelerate implementation.
Iran’s parliament in May approved a 20-year strategic partnership with Russia. The agreement, initially signed by Russian President Vladimir Putin and Pezeshkian on January 17, was ratified by Russia’s State Duma in April.
While the pact does not include a mutual defense clause, it commits both nations to military-technical cooperation, joint exercises, and coordination against what they define as shared threats.
Officials from both governments remain in regular contact to ensure agreements are carried out, Tsivilev said. “No pressure or sanctions can disrupt this process.”
Iranian and Russian officials have repeatedly announced projects on trade, transport, and energy. Many have been delayed or left incomplete because of financial limits and logistical difficulties.
"This reprogramming action provides funding for the replacement of defense articles from the stocks of the Department of Defense expended in support of Israel or identified and notified to Congress for provision to Israel," the document said.
The budget document dated August 1, is titled Israel Security Replacement Transfer Fund Tranche 9, and requested $498.265 million in funding for THAAD systems alone.
“Funds are required for the procurement of replacement THAAD Interceptors expended in support of Israel. This is a congressional special interest item. This is an emergency budget requirement,” the document said.
The War Zone reported that the US fired more than 150 THAAD missiles during the Iran war alone.
The publication also said details of US bombings of Iranian nuclear facilities, known as Operation Midnight Hammer, are only just coming to light now, though the full cost is still unknown.
The US announced it had deployed THAAD defences in Israel in October, more than a year after the Gaza war broke out, seeing Iran's allies in the region firing on the Jewish state from Lebanon, Yemen, Iraq and Syria.
It also came after Iran's second direct attack on Israel when hundreds of missiles and drones were fired in a massive aerial barrage.
"This reprogramming action addresses funds for the replacement of defense articles expended in support of Israel through US combat operations executed at the request of and in coordination with Israel and for the defense of Israeli territory, personnel, or assets during attacks by Iran, and subsequent or anticipated attacks by Iran and its proxies," the document said.
The documents show the extent of the cost of the US military's defense of Israel and also the cost of weapons that American forces used during their extensive bombing of Iran’s three main nuclear facilities in June, Natanz, Fordow and Isfahan.
Among the funds requested were those to "replace GBU-39s expended during Operation Midnight Hammer in support of Israel", the document detailed. "This is a congressional special interest item. This is an emergency budget requirement."
Made by US defense contractor, Lockheed Martin, THADD intercepts short, medium and intermediate-range ballistic missiles, engaging targets directly at ranges of 93 to 124 miles both inside and outside the atmosphere.
Each THAAD battery system requires around 100 soldiers, and has been used to help defend Israel from ballistic missiles from both Iran and its military ally, the Houthis, in Yemen.
US Missile Defense Agency documents say that each THAAD interceptor costs roughly $12.7 million, and now there are concerns about insufficient American stockpiles.
In addition to Iranian attacks, Israel says dozens of drones and ballistic missiles have been fired from Yemen to Israel since the outbreak of the Gaza war. The Iran-backed Houthis say their actions are in allegiance with Iran’s ally Hamas in Gaza.
During the 12-day war in June, Iran fired over 500 ballistic missiles in response to Israel’s surprise attacks on June 13, in which dozens of military and nuclear figures were killed.
