These facilities are key components of Iran’s military manufacturing base, providing the raw materials necessary for ballistic missile and drone production.
By Hezy Laing
The Israeli Air Force, reportedly in coordination with U.S. forces, launched a devastating wave of precision airstrikes on March 27, 2026, targeting Iran’s most critical industrial hubs.
The primary targets were the Mobarakeh Steel Company in Isfahan and the Khuzestan Steel Company near Ahvaz, which together form the backbone of the Iranian metals sector and serve as vital revenue streams for the Islamic Revolutionary Guard Corps.
These facilities are not only essential for domestic infrastructure but are also key components of Iran’s military manufacturing base, providing the raw materials necessary for ballistic missile and drone production.
The strike on the Isfahan-based Mobarakeh Steel Company—which produced roughly 7.1 million tons of steel in 2025—inflicted severe damage on an electricity substation, an alloy steel production line, and portions of its 914MW and 250MW power units.
According to Isfahan’s provincial governor, Mehdi Jamalinejad, the assault resulted in at least one death and 16 injuries at the site.
Simultaneously, the Khuzestan Steel Company, Iran’s second-largest steelmaker with an annual output of approximately 4.2 million tons, saw its production lines completely halted after munitions struck two storage silos, the Direct Reduction Unit 2, and the Zamzam 3 mega-module.
While Khuzestan security deputy Velayat Hayati initially reported no direct hits to the blast furnaces, the destruction of silos and power infrastructure has effectively crippled export capacity.
Strategic analysts suggest these strikes aim to sever Tehran’s economic ability to sustain prolonged conflict, with early assessments predicting billions of dollars in long-term damage.
The offensive follows a month of intensifying hostilities that have seen energy prices surge and global markets slide as the conflict moves from military targets to heavy industrial infrastructure.
Iranian Foreign Minister Abbas Araghchi condemned the attacks and threatened a “heavy price” for the destruction of the industrial sites.
