Israel’s largest oil refinery complex took a far worse beating from Iranian missile strikes than the government initially let on. The Bazan Group facility in Haifa Bay, which handles a significant portion of the country’s refining capacity, will remain offline for repairs until at least 2028, according to Israeli media reports that paint a picture of damage well beyond what authorities previously acknowledged.

The damage timeline starts with a June 2025 strike during what was designated Operation Rising Lion. That attack killed three workers and forced a complete shutdown of the facility.

Then came March 2026, when additional barrages landed during Operation Lion’s Roar. The infrastructure losses include gas turbines, steam boilers, electrical rooms, and power plants—all damaged or destroyed.

Initial public estimates pegged direct damage somewhere between $150 million and $200 million. But the discovery of broader impacts on auxiliary systems suggests the true economic toll runs considerably higher. Bazan’s own disclosures to the Tel Aviv Stock Exchange documented operational halts and localized damage, but the full picture has only emerged through subsequent reporting.

No hazardous leaks or injuries have been reported since the March 2026 incidents, according to official records.

The Israeli government already had plans to phase out petrochemical production in Haifa Bay by 2031. That gives the Bazan facility roughly three years of operational life after its projected repair completion in 2028.

For crypto market participants, the connection runs through energy costs. Bitcoin mining operations are directly exposed to fluctuations in energy pricing. Mining profitability is fundamentally a spread trade between the value of mined coins and the cost of electricity consumed to mine them. Anything that pushes energy costs higher compresses that spread, potentially forcing less efficient miners offline and concentrating hash power among operations with access to cheaper energy sources.

Traders monitoring the intersection of energy and crypto markets should watch for any revisions to the 2028 repair timeline, as further delays would extend the supply impact, and monitor whether Israel accelerates alternative energy sourcing or refining partnerships with neighboring countries.