News - Middle East: The Israeli occupation is seeking to revive the port of Umm al-Rashrash (Eilat) through temporary financial measures aimed at restoring some maritime traffic and salvaging economic and industrial activity at the port, which has been largely paralyzed for the past two years.

Sources indicate that officials within the so-called "Israeli government" presented a plan to the Finance Committee offering nearly $500,000 per car-transport vessel docking at the port, in an effort to offset the costs of navigating around the Cape of Good Hope and the longer maritime routes. The plan proposes a total budget of approximately 21 million shekels (around $7 million) for a three-month trial period, requiring a minimum of four ships to dock each month.

The Ministry of Transport has promoted the scheme as an emergency measure to protect port operations and staff until conditions in the Red Sea and surrounding shipping lanes stabilize. However, observers warn that the reality on the ground raises significant doubts.

Key challenges include:

Shipping companies’ reluctance to risk transiting threatened routes amid Yemen’s continued naval restrictions on Israeli vessels and ongoing Yemeni maritime deterrence operations, which have proven effective in disrupting conventional shipping pathways.

Short-term financial incentives are unlikely to offset the higher insurance premiums, security costs, and additional fuel and time required for longer routes, making the economic case for participation unviable.

International shipping markets remain cautious about ports perceived as vulnerable to attacks; real confidence requires security guarantees, not temporary financial support.

Internal Israeli government discussions reflect confusion and improvised measures among ministries under political and economic pressure, signaling a stopgap solution ahead of any strategic decision involving regional or international protection of shipping lanes.

Regionally, the Umm Al-Rashrash port issue highlights Israeli enemy’s search for alternative shipping options while Yemen’s maritime capabilities continue to exert pressure as part of a broader strategy supporting Palestinian and national interests.

Analysts conclude that the Umm Al-Rashrash revival plan is unlikely to succeed without genuine security guarantees and the lifting of Yemen’s maritime restrictions. Without addressing insurance costs, logistical challenges, and long-term commercial viability, the temporary funding alone cannot restore port operations. Discussions within the Finance Committee on funding ceilings and technical frameworks remain ongoing, leaving the port in a state of continued uncertainty.