ISRAEL Trends and Developments Contributed by: Yoav Harris, John Harris (1940-2023) and Domiana Abboud, Harris & Co Maritime Law Office
cating the maritime boundary line between the countries. The above-mentioned Israeli–Lebanese agree - ment complements the agreements between Lebanon and Cyprus in January 2007, and between Israel and Cyprus in December 2010, for the delimitation of the exclusive economic zones of the two countries. These agreements have established stability in relation to the boundaries of Israel’s exclusive economic zone; this will impact natural gas drilling and related maritime and shipping activities in these areas, which are expected to increase once stability is achieved in the region. The Treaty of Peace, Diplomatic Relations and Full Normalisation Between the United Arab Emirates and Israel, followed by normalisation agreements with Bahrain, have strengthened the strategic location of Israel and Israeli ports. In light of these developments, the Haifa Mari - time Court has already shown its capacity to accommodate diverse international interests. For example, it has exercised its rights in favour of a bunker supplier located in Dubai (arresting MV Huseyn Javid for unpaid bunkers) and a Lib - yan owner (in cancelling the Israeli registration of MV BADR). With the conclusion of the Abra - ham Accords, claimants from the Persian Gulf or other Middle Eastern claimants and interests will find the Haifa Maritime Court to be a favourable jurisdiction. The Israel-Hamas war The war between Hamas and Israel began on 7 October 2023 with the murder, by Hamas ter - rorists, of 1,200 people, mainly civilians, and the kidnapping of 200 more. This massacre was followed by Hezbollah’s missile launches from Lebanon and the Houthi’s attacks on vessels
navigating through the Red Sea at Bab-al Man - dab straits, which violated freedom of naviga - tion under Article 38 of UNCLOS and constituted piracy as defined in Articles 101 and 102. The Property Tax and Compensation Fund Act of 1973 provides for a governmental war risks insurance arrangement and damages to vessels located within the Israeli exclusive economic zone (including the territorial waters). The State of Israel has issued an alternative marine insur - ance arrangement covering vessels located out - side the exclusive economic zone but bound for Israel, namely a premium of 0.1725% of the ves - sel’s value for a period of two weeks, and which also covers cargo from loading to discharge. Although the Houthi’s attacks blocked Eilat Port, the shipping lines found their solution in navigat - ing around Africa, and it seems that the most suffering was caused to the Suez Canal Author - ity, who reported a drop of 23.5% in its income from marine traffic in the canal during the Egyp - tian financial year of July 2023 to June 2024 and a loss of approximately USD 2.2 billion, which obviously increased during the following months up to the present time. Now, after the State of Israel has defeated Hamas’ military power and severally deprived Hezbollah of its military abilities, and with the fall of Asad’s regime in Syria, Israel has strength - ened its strategic position despite still being under military conflict, which will probably have an impact on the economy and trade.
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