Israel Strikes Key Iranian Steel Plant Funding Revolutionary Guards
During its air campaign in Iran, Israel targeted the Mobarakeh Steel Company near Isfahan and another industrial facility in southwestern Iran. Prime Minister Benjamin Netanyahu stated that these strikes significantly damaged Iran's production capacity and cut a major revenue source for the Islamic Revolutionary Guard Corps (IRGC).
However, a New York Times investigation reveals a more complex picture. While the company has close ties to the IRGC, it is also one of Iran's largest employers, providing jobs to over 20,000 workers and playing a central role in the local steel industry. The attacks disabled large parts of the plant for weeks, leaving thousands unemployed and disrupting steel supplies to Iranian industries.
Documents from the U.S. Treasury and Iranian parliament indicate that the company's profits were funneled to an investment fund linked to the Basij militia, part of the IRGC. Controversial privatization processes transferred significant company shares to entities connected to Iran's Supreme Leader's office and senior IRGC officials.
International law experts cited in the report question the legality of the strikes, arguing that generating revenue for a military group does not automatically make a facility a legitimate military target unless it directly and significantly contributes to combat operations. Parzin Nadimi, a senior fellow at the Washington Institute, noted that although the steel products are not directly used for missile production, the company might develop steel alloys for military applications, including vehicles and missile launchers.
A senior U.S. military official stated there was no known American involvement in the steel plant strikes. The plant has long been considered a prestigious workplace in Iran and supported community projects. After the attacks, only a small portion of the workforce remained active, though one damaged blast furnace has recently resumed operations. Public opinion in Iran is divided, with some blaming the IRGC for the crisis and others accusing Israel and the U.S. of harming Iran's economy and civilians.
