The Middle East steel industry is increasingly being drawn into the ongoing regional conflict, with escalating hostilities heightening uncertainty across energy, logistics and industrial supply chains.
According to media reports, U.S./Israel airstrikes have targeted Iran’s two major steel producers, Mobarakeh Steel Company and Khuzestan Steel Company.
Mobarakeh Steel, Iran’s leading flat steel producer, reportedly sustained damage to a power plant and part of its alloy steel production line. Local media indicated that at least one worker was killed and others injured, with the company aiming to restore operations as soon as possible.
Khuzestan Steel, a key billet producer and exporter, was also targeted. Market sources indicate that operations have been halted following damage to storage infrastructure, with production lines shut pending safety inspections.
The strikes come amid broader pressure on Iran’s industrial base, including disruptions to gas and electricity supply, critical inputs for steelmaking, following earlier attacks on energy infrastructure.
In a retaliatory development, Iran claimed responsibility for strikes on aluminium facilities in Bahrain and the UAE, including Aluminium Bahrain (Alba) and Emirates Global Aluminium (EGA). EGA, the Middle East’s largest aluminium producer, reported damage at its Abu Dhabi operations, with injuries recorded, while Alba said it is assessing the impact of the attack, with two employees reportedly injured.
While no direct physical damage to GCC steel mills has been reported so far, the risk environment has intensified. Local Iranian media indicated that Iran has warned it could carry out strikes on steel facilities in Israel and five Gulf states if attacks on its industrial assets continue. Reported potential targets include Hadeed (Saudi Arabia), Emirates Steel Arkan (UAE), Qatar Steel, Foulath (Bahrain), Kuwait Steel, and Yehuda Steel (Israel).
Concerns over potential targeting of industrial assets, along with ongoing logistical and security challenges, are weighing on the sector.
Reflecting these pressures, Bahrain-based Foulath Holding, the parent company of Bahrain Steel and Sulb, has declared force majeure on parts of its operations, citing airspace restrictions, maritime disruptions and heightened security risks.
