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‘Major blow to economy’: Iranian official acknowledges impact of Israeli strikes on steel plants

A Tehran official told ‘The New York Times’ Israeli strikes in Isfahan and Ahvaz will hinder postwar recovery; Israel says sites are military-linked, a businessman cites strict security checks

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A senior Iranian official told ‘The New York Times’ overnight that Israeli strikes on two steel plants dealt a significant blow to the country’s economy and will hinder postwar recovery. The unnamed official said the facilities produce materials essential for construction and road building.
According to Iranian reports, the targets were the Mobarakeh Steel plant in Isfahan and the Khuzestan Steel plant in Ahvaz, near the Iraqi border. Israel says the sites are part of Iran’s military-industrial supply chain and are partially owned by the Islamic Revolutionary Guard Corps.
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תקיפות בדרום מערב איראן ביאספהאן
תקיפות בדרום מערב איראן ביאספהאן
Strikes in southwestern Iran, in Isfahan
(Photo: from X, used under Section 27a)
Both companies operating the plants are under U.S. sanctions. Washington has said Mobarakeh is part of a network supporting the regime’s Basij militia and is a critical revenue source for Iran’s security establishment.
A former engineer at Mobarakeh told the newspaper that access to the site requires strict security clearance, with all employees, suppliers and contractors undergoing background checks and receiving special permits.
Following the strikes, Iran issued threats against six steel plants across the Middle East, including facilities in Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Israel.
Iran’s warning of retaliatory strikes on six steel plants in the Middle East:
The Khuzestan plant was also targeted in a 2022 cyberattack attributed to a group known as “Predatory Sparrow,” believed to be pro-Israel. Iran said at the time it had thwarted the attack but acknowledged production was halted.
Israel this week said it would intensify strikes on infrastructure in Iran. The military said the targeted industries are largely “dual-use,” serving both civilian and military purposes, or have ties to the government and armed forces. Last week, Israel struck the South Pars gas field, a major source of domestic natural gas, and this week targeted large industrial complexes near Qazvin.
Hours before the latest strikes, Defense Minister Israel Katz said attacks in Iran would expand to additional targets and sectors supporting the regime’s military capabilities. He warned Tehran to halt missile fire at Israeli civilians, saying, “They will pay increasingly heavy prices for this war crime.”
A supplier to the Khuzestan steel plant who frequently visits the site said the strikes are unsettling the business community and contractors working with industries that could be considered dual-use.
First published: 10:17, 03.28.26
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