NextFin News - Israeli Prime Minister Benjamin Netanyahu announced on Friday that a joint military offensive with the United States has successfully dismantled 70% of Iran’s steel production capacity, marking a significant escalation in the economic warfare accompanying the current regional conflict. Speaking from a military intelligence base in Tel Aviv, Netanyahu confirmed that the Israeli Air Force, in "full coordination" with U.S. President Trump, has shifted its targeting strategy toward Iran’s industrial backbone to starve the Islamic Revolutionary Guard Corps (IRGC) of the financial resources required to sustain its military operations.
The impact on the ground has been immediate and severe. Iran’s two largest industrial giants, Khuzestan Steel Company and Mobarakeh Steel Company, have confirmed a total cessation of operations following what they described as a "high volume of attacks." Mehran Pakbin, deputy head of operations at Khuzestan Steel, stated to local media that restarting these units would take between six months and a year, effectively removing Iran—the world’s 10th largest steel producer—from the global market for the foreseeable future. The destruction of these facilities is estimated by Israeli security sources to cause billions of dollars in damage to the Iranian economy, which is already reeling from a 34-day internet blackout and decades of Western sanctions.
U.S. President Trump reinforced this aggressive posture via social media, celebrating the destruction of a strategic highway bridge linking Tehran to Karaj. "The biggest bridge in Iran comes tumbling down," the U.S. President wrote, adding that it is time for Tehran to "make a deal" before there is "nothing left" of the country. This rhetoric aligns with recent statements from U.S. Defense Secretary Pete Hegseth, who suggested the administration’s goal is to reset Iran’s industrial and military capabilities by decades. The coordination between the two allies has expanded beyond military hardware to include civilian-use infrastructure, such as power plants and pharmaceutical research centers, which the Israel Defense Forces (IDF) allege are being used for chemical weapons development.
In Lebanon, the offensive against Hezbollah shows no signs of abating. Netanyahu emphasized that the IDF will continue to "expand the security zone" in southern Lebanon, where Israel already controls approximately 8% of the territory south of the Litani River. Defense Minister Israel Katz further confirmed that the military has begun demolishing homes in southern Lebanese villages, characterizing them as "forward outposts" for Hezbollah. The Lebanese Ministry of Health reported that the death toll from Israeli strikes since March 2 has surpassed 1,200, while the conflict continues to disrupt vital supply chains across the Levant.
However, the strategy of total industrial neutralization carries significant risks for the global economy and regional stability. While the U.S. and Israel aim for a "maximum pressure" outcome, the IRGC has already begun retaliating by targeting U.S.-linked aluminum and steel facilities in Gulf states and launching cyberattacks against Western infrastructure, including an Amazon cloud computing center in Bahrain. Analysts warn that the systematic destruction of civilian-linked infrastructure, such as the Pasteur Institute and pharmaceutical plants, may lead to a humanitarian crisis that complicates any future diplomatic resolution. For now, the momentum remains firmly with the U.S.-Israeli coalition, as they bet that the total erosion of Iran’s economic base will force a collapse of the regime’s regional influence.
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