In brief
The Khuzestan Steel Company and Mobarakeh Steel Company have shut down due to extensive air strikes carried out in coordination by the US and Israel. Restarting operations is anticipated to take up to one year, threatening Iran's already struggling economy, which has been hampered by Western sanctions.
Iran's two largest steel plants have been shut down due to multiple rounds of US-Israeli air strikes, the companies operating them say. 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 the Khuzestan Steel Company in south-western Iran, was quoted as saying by Iranian media.Mobarakeh Steel Company said its production lines in the center of the country had completely shut down following the high volume of attacks. The strikes, which Israeli media and Iran's foreign minister said were first launched by Israel in coordination with the US last Friday, could cause major damage to Iran's economy. Iran is the 10th largest producer of steel globally, according to data from the World Steel Association, and any halt to production could have major implications for supply chains and businesses across the country.Israeli military sources reported that the strikes were aimed at disrupting Iran's infrastructure, which includes facilities linked to its Islamic Revolution Guard Corps (IRGC). Iranian officials have indicated retaliatory action against US-linked facilities in Gulf states. Tensions have escalated significantly, with missile attacks reported from Iran and responses from regional nations, raising fears of broader conflict as hostilities intensify.
