Iran s attack on Haifa could bring much of Israel s economy and military to a halt.
The country s biggest oil refinery, Bazan, located it Haifa, supplies 80% of all the petrol it needs has been shut down after a missile strike. The Bazan oil refinery at Haifa also produces Kerosin to fuel Israeli jets.
The refinery produces around 200,000 barrels a day or about 80% of the country s production.
https://www.handelsblatt.com/dpa/bericht-rakete-schlug-in-groesster-raffinerie-israels-ein/30371184.html
Film footage shows devastating strikes by Iranian missiles on Haifa and Israel continuing
https://www.youtube.com/watch?v=ag8zryZxqwg
https://www.telegraph.co.uk/world-news/2025/06/16/bunker-busting-missile-shakes-israelis-faith-in-own-safety/
https://www.youtube.com/shorts/FhljPMkgX60
https://www.youtube.com/shorts/RSv7oGdx1bU
https://www.youtube.com/shorts/PehJeUH3Zdg
https://www.youtube.com/shorts/putifBRwLFs
The port of Haifa is a key hub for importing oil from Europe to power the Israeli economy. There are few aenergy lternatives to imports from Europe via the Bazan oil refinery.
It is not clear how large a sockpile of petrol, kerosin and diesel Israel has or when and if the Bazan oil refinery resumes its operations.
From media
Bazan is one of two refineries in Israel that produce gasoline, diesel fuel, and cooking gas from oil. Israel’s oil consumption is entirely from imports, mainly from Azerbaijan. Bazan is the larger of the two refineries, the smaller one being located in Ashdod.
The Leviathan and Karish gas production platforms are currently shut down, which has led some of Israel’s power stations to burn diesel fuel rather than gas in order to keep up regular production. This is why all power plants in Israel are required to be dual-fuel. The result is that demand for diesel fuel is now larger than ever.
...
According to the Ministry of Energy and Infrastructure, no fuel shortage is expected in Israel. For security reasons, the ministry refuses to specify how fuels will be supplied. Israel has emergency reserves of fuel precisely for this kind of situation, and the Ashdod oil refinery is still working. If necessary, Israel can also import fuels. There is thus no fuel shortage expected at the moment until production at the Bazan refinery is restored.
https://en.globes.co.il/en/article-minister-denies-israel-faces-fuel-shortage-1001513068
But it is clear that the attack on Haifa and Bazan by Iranian missiles and hypersonic missiles has been of an unprecedented magnitude. It is the first time ever, the Bazan oil refinery has beenhit. The Iron Dome appears to have failed.
Fuel shortages may soon loom, hitting not just private individuals but also businesses. The cost of fuel is set to soar. A total shut down of the country s economy cannot be ruled out as businesses cannot transport products.
In addition, diesel, which seemst o have produced by Bazan, has increasingly been used as an emergency alternative to gas and other energy resources which have been damaged by Iranian missles.
The war could also soon lead to Israel s creditworthiness being downgraded again, pushing up the cost of financing its growing debt just as tax revenue collapses as busineesses struggle.
The problems the Israeli economy are facing are a microcosm and a reflection of the US economy, also teetering on the brink of a dollar collapse.
The price of oil is starting to rise in the USA and West along with other enrgy, cripppling the economy and fuelling inflation.
If the Starit of Hormuz closs, oil could go through the roof and the economies of the West freeze and collapse.
The drag of the national and other debt is so big that the US and EU is not expected to grow. AI, touted as a driver of productivity, has been exposed as a dud and a flop, a mere marketing gimmick to suck in trillions.
Undeterred, the Silicon Valley tech billionaires have so much influence over the Trump admin and Pentagon, they are obtaining 100s of millions of contracts also to build what appears to be a stealth AI dictatorship.
https://www.cnbc.com/2025/06/16/openai-wins-200-million-us-defense-contract.html
An analyst has predicted the dollar could lose 25 to 50% of its value making imports to the USA very expense. As a big importer running a big trade defcit, the US economy will be hit by changes in the exchange rates
Trump and the GY have laid out a plan to create their own critical metals supply chain after Trump outdid himself by cutting off the vital souce in a massively overestimation of US economic power, jeopardising military weappons productions just as he is fuellng the flames of war.
From media
Group of Seven leaders on Monday provisionally agreed on a strategy to help protect the supply of critical minerals and bolster their economies, according to a draft statement seen by Reuters.
The draft, which a source said had not yet been approved by U.S. President Donald Trump, also said minerals markets should reflect the real costs of responsible extraction, processing, and trade of critical minerals.
https://www.bloomberg.com/news/articles/2025-06-16/g-7-works-to-secure-critical-minerals-in-face-of-china-curbs
However, it is not clear if and when the plan will produce metals needed to replace Chinese imports.
Trump, Netanyahu and vn der Leyen also have a common problem as they have been identified as the covid jab tyrants and killers by the broad public and face criminal prosecution.
This threat to them personally may explain the willingness of Trump, Betanyahu and vn der Leyen and other Western leaders to keep escalating a war with iran which is doomed to destroy whatis left of the US and West.
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