JUST IN: Iran’s Largest Steel Producer Mobarakeh Steel Company Announces Complete Shutdown of All Production Lines

JUST IN: Mobarakeh Steel Company (MSC), Iran’s biggest steelmaker and a cornerstone of its industrial economy, has declared a full halt to operations, stating that all production lines have been completely shut down due to severe damage from repeated US-Israeli airstrikes under Operation Epic Fury.

By Reflecto News Staff
April 2, 2026

ISFAHAN, IRAN – In an official statement released late Wednesday, Mobarakeh Steel Company confirmed that “continuation of operations is not possible” after sustaining “heavy damage” and “fundamental destruction” to key production units. The company instructed all personnel not to report to the complex until further notice.

This marks the second major strike on the facility in recent days. Iranian media reported that the latest attack occurred around March 31–April 1, compounding earlier damage and forcing a total shutdown.

Impact on Iran’s Steel Industry

Mobarakeh Steel, located in central Isfahan province, is Iran’s flagship flat steel producer with an annual capacity exceeding 7–8 million tons. It serves critical roles in construction, manufacturing, infrastructure, and certain defense-related applications.

• Production Halt: All lines are offline, affecting hot-rolled steel, direct reduced iron (DRI), and related outputs.
• Workforce: Thousands of employees have been told to stay home, raising immediate concerns over livelihoods in the region.
• Related Facilities: Khuzestan Steel Company in Ahvaz has also halted operations, with reconstruction estimated to take 6–12 months. Other sites, including parts of Esfahan Steel Company (ESCO) and the Sefid Dasht complex, have sustained damage.

The strikes targeted storage facilities, power infrastructure, substations, alloy steel lines, and power generation units, severely disrupting operations.

Strategic and Economic Blow

Analysts describe the attacks on Iran’s steel sector as a deliberate expansion of Operation Epic Fury aimed at undermining the country’s ability to sustain prolonged conflict. Steel is a key non-oil export earner and supports domestic military manufacturing.

The shutdown is expected to:

• Reduce Iran’s overall steel output and export capacity significantly.
• Exacerbate economic strain already caused by sanctions, war damage, and disruptions in the Strait of Hormuz.
• Potentially lead to broader industrial slowdowns in construction and manufacturing.

This follows a pattern of targeting dual-use or economically vital infrastructure, including the recent collapse of the B1 Bridge in Karaj.

Context in the Ongoing Conflict

The development coincides with:

• President Donald Trump’s vow to intensify strikes “extremely hard” over the next 2–3 weeks while claiming core objectives are nearing completion.
• Iran’s army chief warning that “no enemy soldier will survive” any ground invasion.
• Continued Iranian enforcement of its “toll booth” system in the Strait of Hormuz and drafting of a joint navigation protocol with Oman.
• Volatile oil markets, with Brent crude surging 6% amid fears of prolonged disruption.

Iranian officials are likely to denounce the strikes on industrial sites as attacks on civilian infrastructure and economic terrorism.

International Reactions

The targeting of heavy industry has drawn attention amid broader diplomatic efforts:

• The UK is hosting a virtual meeting of around 35 countries to discuss reopening the Strait of Hormuz.
• Germany has urged China to use its influence to push Iran toward negotiations.
• Concerns are growing over civilian economic impacts and long-term reconstruction challenges.

Gulf states continue maximizing bypass pipelines to offset energy disruptions, but the steel shutdown adds another layer of economic pressure on Iran.

Looking Ahead

Rebuilding Mobarakeh Steel and other affected facilities could take months or longer, depending on the extent of damage to power systems and core production modules. The cumulative effect on Iran’s industrial base may influence its willingness to negotiate, though current rhetoric from Tehran remains defiant.

As Operation Epic Fury continues with promised escalation, the strikes on steel production highlight the broadening economic costs of the conflict for Iran while raising questions about the balance between military objectives and long-term regional stability.

Reflecto News will monitor reconstruction updates, economic fallout, any Iranian retaliatory statements, and developments from ongoing diplomatic initiatives.

Related Coverage on Reflecto News:

• President Trump Vows to Hit Iran “Extremely Hard” Over Next 2–3 Weeks
• Iran Army Chief Warns No Enemy Soldier Will Survive Ground Invasion
• UK Hosts Meeting of 35 Countries on Reopening Strait of Hormuz
• Germany Urges China to Push Iran Toward Negotiations
• IRGC Claims Responsibility for Attack on Amazon Cloud Center in Bahrain
• Brent Crude Oil Prices Surge 6% Amid Escalating Rhetoric

This report is based on official statements from Mobarakeh Steel Company, Iranian state media reports (Fars, IRNA, Tasnim), and international coverage from Xinhua, Al Arabiya, bne IntelliNews, DW, and others.