TEL AVIV (Reuters) - Israeli shipping mogul Sammy Ofer, 89, whose business empire is at the centre of a scandal over trade with Iran, has died after a long illness, a family representative said on Friday.
Ofer was the wealthiest man in Israel, building with his brother Yuli one of the world's largest private shipping fleets. Together they have an estimated fortune of $10.3 billion (6.3 billion pounds).
The United States imposed sanctions on Ofer Brothers Group last month, accusing it of selling an oil tanker to Iran. The brothers denied any wrongdoing, saying they did not realise the buyer had been a front for an Iranian company.
The Iranian company at the centre of the allegations has also denied any involvement.
In a statement posted on its website it said it had "no deal with Tanker Pacific company nor with the other (Israeli) companies and the alleged tanker has not been sold to IRISL."
The Israeli government has long urged tough action against Iran, accusing it of building a nuclear bomb. But authorities reacted cautiously to the U.S. move, fuelling speculation about possible links between the brothers and intelligence services.
Based in Monaco, Ofer Brothers controls a worldwide network of companies, and Israeli newspapers have reported that besides the controversial tanker sale, a number of the group's ships have docked in Iranian ports in recent years.
Israeli Prime Minister Benjamin Netanyahu issued a statement eulogising Ofer as a "Zionist through and through" and a business leader who "contributed greatly to Israel's economy."
Israeli lawmakers met on Tuesday to discuss legal aspects of the case, but the meeting, aired live on television, was adjourned within minutes after the chairman, Carmel Shama-Hacohen, received a note from an aide.
"Let's just be clear the note is not from a political figure and not from a business figure," Shama-Hacohen said, leaving open the possibility of an appeal by the defence establishment.
"It turns out that reality is much more complex, much more complicated and touchy than the average imagination can handle," he said.
Ofer was born in Romania in 1922 and his family moved to the territory that was to become Israel shortly afterwards. His father established a small shipping company that his sons developed into a world leader.
He was ranked No. 79 on the Forbes list of the world's wealthiest people.
Ofer was also one of the world's top art collectors, with a penchant for Impressionist paintings. He was reported to have paid $40.3 million at an auction in 2006 for a painting by Vincent van Gogh.
(Writing by Maayan Lubell; Editing by Tim Pearce)
