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Iran faces \u0131ndustrial setbacks after 12-day conflict with Israel<\/strong><\/p>\n The recent 12-day war between Iran and Israel has left a significant mark on Iran\u2019s industrial and economic landscape, according to Dr. Keyvan Jafari Tehrani, an expert in mining and commodity markets. In an analysis shared via Eco Iran, Dr. Tehrani reflected on both the direct and indirect consequences of the conflict, with particular emphasis on the commodities sector.
\nExpressing condolences to those affected\u2014whether by destruction of property, industrial damage, or personal loss\u2014Dr. Tehrani stated that the unplanned war severely impacted Iran\u2019s infrastructure and came at a moment when the global commodities market was already under pressure.
\nA Perfect Storm for Commodities
\n\u201cThe Israeli attack happened just as the commodity markets were in a seasonal slump,\u201d he explained, citing China\u2019s economic stagnation as a major influence. Iron ore prices, already on a downward trend, dipped below $93 per ton during the conflict, briefly recovered by $1, then dropped again to $92.75 after the ceasefire was announced.
\nDr. Tehrani emphasized that market forces\u2014not geopolitical tensions\u2014remain the main driver of commodity prices. \u201cWhat we observed was more of a psychological ripple effect,\u201d he noted, pointing to concerns around potential disruptions in oil shipments through the Strait of Hormuz, which could have triggered global energy price hikes.
\nIndustrial Losses and Steel Sector Resilience
\nOne of the most devastating direct hits came on the second day of the war, when an Israeli airstrike destroyed the Keyhan Sanat Caspian iron ore concentration facility in Asadabad, Hamedan. Fortunately, the attack occurred after working hours, sparing lives, though eight individuals were injured.
\nDespite such setbacks, Iran\u2019s steel industry had been gaining momentum. In May\u2014just before the outbreak of hostilities\u2014Iran overtook Brazil to rank as the world\u2019s ninth-largest crude steel producer. However, sustaining this growth will now require major financial support and rebuilding efforts.
\nExports Disrupted, Buyers Hesitate
\nThe war also wreaked havoc at Iran\u2019s main export hub, Shahid Rajaee Port, where congestion grew due to halted shipments and buyer reluctance. Foreign investors, particularly from China, quickly exited the country. Many trade negotiations were suspended, and several Chinese delegations left Iran by land as evacuation flights were delayed.
\nWith export contracts stalled and international buyers exercising caution, vessels sat idle for weeks, amplifying uncertainty and incurring potential losses in the millions of dollars.
\nA Call for Unity and Financial Strategy
\nDr. Tehrani urged the Iranian government and industry leaders to step in with financial support, warning that expecting private companies alone to carry the burden of reconstruction is \u201cunrealistic.\u201d He suggested leveraging domestic assets to secure international financing, noting that funding proposals typically start at \u20ac25 million and require professional execution.
\nHe cited Mobarakeh Steel Company\u2019s efforts to raise \u20ac600 million for its Hot Rolling Mill 2 project as an example\u2014partially through public bonds, and potentially through export-backed revenue.<\/p>\n