Haifa oil refinery shut down after sustaining heavy damage in Iran missile strike

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Israel’s Bazan Group announced Monday evening that all operations at its Haifa Bay refinery and subsidiaries have been shut down following a direct Iranian missile strike very early in the morning. The company confirmed in a statement to the Tel Aviv Stock Exchange that the attack caused significant damage, including to its on-site power station. Three people were killed in the incident.

According to the Energy Ministry, the attack struck a strategic facility and left the power generation unit—critical to steam and electricity production—heavily damaged. The ministry assured the public it is prepared to maintain national fuel supply and estimated that repair work will take about 10 days.

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The direct hit to the Bazan refinery

The attack, which had not been publicly disclosed until Energy Minister Eli Cohen’s announcement in the evening, came as a surprise to some in Israel’s defense establishment. It is unclear whether the incident would have become public knowledge had Bazan not been a publicly traded company legally obligated to report material events.

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הנזק במפעל בז"ן

הנזק במפעל בז"ן

Damage at the Bazan power plant

In its official statement, Bazan said: “As a result of the strike on the Bazan Group compound, the power station responsible for part of the steam and electricity production for the group’s facilities was significantly damaged. Additional damages occurred, and at this time all refinery operations and subsidiary facilities have been shut down.”

Bazan added that it is working with the Israel Electric Corporation, which responded immediately to assist in restoring power to the site, and that it is currently assessing the full scope of the damage. The company also expressed condolences to the families of the victims.

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פגיעה ישירה במפעל בז"ן

פגיעה ישירה במפעל בז"ן

Bazan plant on fire after missile strike

(Photo: Gil Nehushtan)

Cohen visited the blast site along with Bazan’s CEO and the head of the Electric Corporation, Meir Spiegler. Cohen said the energy sector will continue to provide for the country’s fuel needs during the recovery period.

Lihi Shahar, director of the Haifa Bay Environmental Protection Union, said the incident highlights long-standing concerns. “This was a known scenario. Just a day earlier, we saw damage and Bazan reported it to the stock exchange. Nationally, this raises serious questions about Israel’s energy security,” she said.

Shahar criticized past claims by Bazan that wartime conditions proved the facility must remain operational. “Two or three missiles and that theory collapsed. Now we must ask: what are the alternatives? The Energy Ministry and the National Emergency Authority need to answer that,” she said.

“We've been warning for years that there’s no airtight protection," Shahar added. "Back in 2018, we described this scenario—war with Iran, missile strikes, and now Bazan is offline. What now?”