Iran war: Strikes on steel deal painful blow to economy

Lead

US-Israeli airstrikes have forced the shutdown of Iran's two largest steel plants, dealing a major blow to the country's economy and industrial capacity. The companies operating the facilities — Mobarakeh Steel in Isfahan and Khuzestan Steel in Ahvaz — confirmed the halt in production, with one official estimating that restarting operations could take between six months and a year.

"Our initial estimate is that restarting these units will take at least six months and up to one year," Mehran Pakbin, deputy head of operations at Khuzestan Steel Company, was quoted as saying by Iranian media, according to the BBC. Mobarakeh Steel Company similarly said its production lines had "completely shut down following the high volume of attacks."

Coverage Comparison

Both the BBC and Deutsche Welle (DW) reported extensively on the strikes, focusing on their economic impact on Iran. The BBC's coverage highlighted the shutdown of the plants and the potential global implications for steel supply chains, given Iran's position as the 10th largest steel producer worldwide. DW's reporting emphasized both the internal reaction within Iran — with public debate over whether the sites were legitimate military targets — and the broader economic consequences, including damage to export capacity and infrastructure.

According to the BBC, Iranian Foreign Minister Abbas Araghchi said on social media that Israel had hit the two steel factories, a power plant, and civilian nuclear sites, claiming the strikes were coordinated with the US. Israeli media quoted an Israeli security source as saying the strikes were expected to cause billions of dollars in damage to the Iranian economy.

Key Claims

• Shutdown of major steel plants: Both Mobarakeh Steel and Khuzestan Steel have halted production following the strikes, as reported by the BBC and DW.
• Significant export revenue loss: Mobarakeh Steel alone generated $860 million in export revenue between March 2025 and January 2026, according to company-linked reporting cited by DW — a figure that has not been independently verified.
• Infrastructure damage: Argus Media, a global energy and commodity market specialist, reported that the strikes damaged storage facilities and power infrastructure at both plants, and predicted a reduction in Iran's production and export capacity — as reported by DW.
• Global steel market position: Iran is the 10th largest steel producer globally, with annual output of roughly 31.8 million tons, according to the World Steel Association, as cited by both BBC and DW.
• Mixed reports on operational status: While Khuzestan Steel appears to have halted operations, the Wall Street Journal reported that Mobarakeh remained operational despite damage, a detail carried by a single outlet (as cited in DW's report).

Perspectives

Iranian Government and Military

Iranian officials have framed the strikes as an attack on the nation's infrastructure, with Foreign Minister Araghchi condemning the targeting of industrial and civilian sites. The IRGC has threatened retaliation, and has been accused by Israeli officials of having links to the steel plants.

International Observers

The strikes have been described by some analysts as an attempt to cripple Iran's economic networks, particularly those believed to sustain the state and the Islamic Revolutionary Guard Corps. Others view the attacks as a legitimate measure to degrade Iran's military-industrial capacity. There is limited public focus on the long-term economic consequences for ordinary Iranians.

Independent Experts and Media

Several outlets, including Argus Media and the Wall Street Journal, have provided technical assessments of the damage, though independent verification remains limited. The full extent of the economic fallout is still being assessed, with estimates of multi-billion-dollar losses emerging from Israeli security sources.