The Israeli Navy can use the Suez Canal. The Suez Canal allows any country to pass as long its not in a state of war with Egypt.
But commercial traffic must be different. That goes to the Port of Eilat to and from the East, and to Jaffe, Acco, Ashdod, etc., to and from the West. The Six Day War was fought over, inter alia, Egyptian attempts to block Eilat shipping.