In response to the US-Israel and Iran conflict, two major Israeli gas fields are set to halt production, and the Haifa oil refinery, with a capacity of 197,000 b/d, has shut down several of its units.
Israel’s energy ministry has instructed Greek firm Energean to temporarily suspend production at its offshore Karish gas field “following the recent geopolitical escalation in the region”, News.Az reports, citing foreign media.
A source said Israel has also ordered the closure of the country’s largest gas field, Leviathan, as a precautionary measure. Leviathan operator Chevron referred questions to the energy ministry. There is no indication of the status of Chevron’s other gas field in Israel, Tamar.
The Haifa refinery operator Bazan said it has shut down some unspecified units. Israel has another refinery, Paz Oil’s 110,000 b/d Ashdod.
The shutdowns in Israel are some of the first effects of the conflict on regional energy infrastructure. These appear to be precautionary, given the Haifa refinery was severely damaged in a missile attack during the 12-day war between Israel and Iran in June 2025.
Then, Leviathan and Karish were shutdown, and Tamar continued to produce uninterrupted.
The shutdowns of the gas fields are likely to result in a steep reduction or complete halt to Israeli gas exports to Egypt, as happened last year.
The biggest effect of the conflict would be disruption to shipping lanes and energy movements through the strait of Hormuz, through which around 20pc of global oil supply and a significant share of LNG exports transit.