The sharp rise in the price of oil due to the Iran war has boosted the share prices of Bazan Group (TASE: ORL) (Haifa Oil Refinery) and Ashdod Refinery (TASE: ARF), which rose 33% and 56% respectively in March.

The market believes that the rise in oil prices due to the blockade of the Strait of Hormuz and the attack on sites in the Persian Gulf will increase refining margins of the two Israeli companies, which are derived from the gap between the price of the crude oil they purchase and the distillates they sell (gasoline, diesel, etc.).

The positive developments in the refining industry are expected to support a move in which the infrastructure giant Shapir Engineering and Industry (TASE: SPEN), controlled by the Shapira brothers, may acquire the controlling shares in Ashdod Refinery.

Shapir currently holds 10% of the shares in the company and will be able to increase its holdings in Ashdod Refinery in the coming years, by exercising three options it holds, and reach up to 65% of the company’s shares with an investment of more than NIS 1 billion.

Ashdod Refinery, which was formerly part of the Paz Group (TASE: PAZ), has been operating without a controlling shareholder since its split from the fuel company in 2023, with the largest shareholder currently being Zohar Levy's Summit Real Estate Holdings (TASE: SMT), with 13.2% of the shares.

Today, it was announced that Ashdod Refinery CEO Ronen Yehezkel is stepping down after only one year.

The first option Shapir has, exercisable until August, is to buy 4.9% of Ashdod Refinery shares from Paz (the refinery's previous owner), which would increase its holdings to about 15%. The remaining options will flow into the refinery's coffers.

Needs a state permit

As an initial step designed to allow Shapir to increase its stake in Ashdod Refinery, the company, managed by Harel Shapira, announced last week that it had signed a memorandum of understanding (MOU) to sell two companies with a natural gas distribution license (Super N.G. in central Israel and Hadera) for NIS 230 million.

This was after the Natural Gas Authority approached Shapir at the end of 2023, claiming that the completion of the deal in which the group invested in Ashdod Refinery, raised concerns about an alleged conflict of interests. In September 2024, the Supreme Court backed this interpretation and Shapir undertook to act in one of two ways: sell the gas distribution licenses or drop below its current holding of 10% in Ashdod Refinery, while canceling its eligibility as a director in the refining company.

Published by Globes, Israel business news - en.globes.co.il - on April 27, 2026.

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