Israel strikes Iran steel plants, raising fears of economic damage

Israeli strikes on Mobarakeh Steel in Isfahan and Khuzestan Steel in Ahvaz damaged storage facilities and power infrastructure. The attacks disrupted production at two of Iran’s biggest steel makers. Israeli security sources estimated the blows could cost billions of dollars and potentially “paralyze” Iran’s steel industry, which was already under pressure from sanctions and war.

Satellite imagery, geolocated footage and 3D reconstruction showed the attacks hit critical production bottlenecks and disrupted output at both plants. New Lines Magazine estimated Iran’s steel sector supports about 1.2 million jobs across the supply chain and accounts for roughly 5% of gross domestic product. The World Steel Association put Iran’s annual crude steel output at about 31.8 million tons in 2025, while DW said Mobarakeh Steel alone generated $860 million in export revenue between March 2025 and January 2026.

Under international humanitarian law, a civilian object can be attacked only if it makes an effective contribution to military action and its destruction offers a definite military advantage. Objects that only contribute economically or financially to a war effort cannot lawfully be targeted on that basis alone. Israeli officials later targeted sectors they considered largely dual-use, but critics argued the plants were civilian industrial infrastructure rather than military assets.

The steel strikes came inside a wider June 13 to June 23, 2025, war in which Israel hit Iran’s nuclear program, ballistic missile sites and energy facilities before a ceasefire took effect on June 24. The House of Commons Library put the death toll at about 1,062 people in Iran and 29 in Israel by July 22, 2025. Iranian Foreign Minister Abbas Araghchi vowed a “HEAVY price” for the attacks, and the Islamic Revolutionary Guard Corps threatened retaliation against industrial sites in Israel and the Gulf.