Iran's Largest Steel Plants Halt Production Amidst Escalating Strikes

Thu Apr 02 2026 21:44:36 GMT+0000 (Coordinated Universal Time)

Iran's two major steel production facilities have ceased operations due to multiple rounds of air strikes attributed to Israeli and US forces. The closure is expected to have significant economic repercussions.

The shutdown of Iran's largest steel plants follows extensive air strikes reported by Iranian officials and media, which have severely impacted production capabilities. The Khuzestan Steel Company and Mobarakeh Steel Company have announced that they anticipate a lengthy recovery period of six months to a year to resume operations. This escalation in hostilities threatens to deeply affect Iran's economy, especially given the country’s status as the tenth largest steel producer globally.

Iran's Largest Steel Plants Halt Production Amidst Escalating Strikes

Iran's two largest steel plants have suspended operations due to multiple rounds of US-Israeli air strikes, as reported by the companies involved. Mehran Pakbin, deputy head of operations at the Khuzestan Steel Company, indicated that it could take between six months and a year to restart these facilities.

The Mobarakeh Steel Company stated its production lines are completely halted as a result of the "high volume of attacks." The escalation of strikes, described by Israeli media and Iran's foreign minister as coordinated actions by Israel and the US, threatens to deliver significant blows to Iran’s economic stability.

Iran is currently the tenth largest producer of steel worldwide, utilizing the material not just for domestic needs in construction and manufacturing but also exporting it globally. A halt in production could disrupt supply chains and business operations, especially as Iran has long grappled with strict Western sanctions.

Recent air strikes have also targeted other critical infrastructures, including a power plant and civilian nuclear sites, with implications of billions of dollars in damages to the Iranian economy, primarily attributed to properties linked with Iran's Islamic Revolutionary Guard Corps (IRGC).

The IRGC has responded to these actions by attacking US-linked steel and aluminum facilities in Gulf regions. As tensions mount, the potential for broader conflict looms, with American and Israeli forces expanding their target range in Iran.

The ongoing situation is further complicated by Iran facing an internet blackout, severely limiting external communication and verification of information.