Israel’s latest wave of strikes against Iran has moved beyond military targets to focus on its largest and most strategically significant infrastructure, and the backbone of its industrial economy.
Following last month’s attacks on the South Pars Gas Field processing facilities and Tehran’s primary fuel storage depots, Israeli forces in the past week expanded their campaign to include major steel complexes, petrochemical hubs, and critical transport infrastructure.
These were not random strikes. Each target represents the largest asset of its kind in Iran—or among the largest—underscoring both the symbolic and material dimensions of the campaign.
South Pars, the world’s largest gas field, anchors Iran’s natural gas production, while Tehran’s fuel depots are central to the country’s gasoline reserves. Their targeting signaled a shift toward economic warfare.
South Pars, the world’s largest gas field, anchors Iran’s natural gas production, while Tehran’s fuel depots are central to the country’s gasoline reserves.
This past week, Israeli strikes hit two of Iran’s most important steel production centers in Isfahan and Khuzestan. Together, these facilities account for roughly half of the country’s steel output; the Isfahan complex stands as Iran’s largest steel producer.
Combined, these facilities have an annual production capacity of roughly 15 million tons. According to the World Steel Association, Iran exports about 11 million tons of steel each year while importing around 2 million tons of steel products. Steel exports generate between $5 billion to $7 billion annually for Iran, making the sector one of the country’s key non-oil revenue sources.
In parallel, Israel targeted one of the Middle East’s tallest bridges—the B1 bridge in Karaj, near Tehran—highlighting a willingness to strike high-profile civilian infrastructure with symbolic resonance.
The most consequential escalation came on April 4, 2026, when Israeli aircraft struck eight petrochemical plants in the Mahshahr industrial zone in southwestern Iran. Among them was the Bandar Imam Petrochemical Complex—the largest petrochemical facility in the country.
The Islamic Revolutionary Guard Corps is involved in all these projects. For example, 49 percent of the shares of Khuzestan Steel Company are held by Yas Holding, which is affiliated with the Islamic Cooperative Foundation.
Even the chief executive officers of some of these institutions have Islamic Revolutionary Guard Corps affiliations or ties. For instance, Saeed Sadeghi, the chief executive officer of Petrochemical Amir Kabir in Mahshahr, is the son of General Hossein Reza Sadeghi, the former deputy coordinator of Intelligence Protection in the Islamic Revolutionary Guard Corps and current advisor to the commander in chief of the Guard. His received his appointment through connections, despite his background being only in the marriage registration office.
Iran’s steel and petrochemical industries also stand out as examples of sustained industrial growth over the past two decades.
According to Iran’s National Petrochemical Company, the Mahshahr region accounts for approximately 28 percent of the country’s actual petrochemical output—second only to oil in generating export revenues. Iran’s steel and petrochemical industries also stand out as examples of sustained industrial growth over the past two decades, albeit with a lot of financial and other government support. Official data show that petrochemical capacity expanded from approximately 18 million tons in 2005 to 96 million tons today. Steel production over the same period increased from 8 million tons to 32 million tons annually.
Israel targeted at least eight of the zone’s twenty complexes in the April 4 strikes. These facilities collectively hold a nominal production capacity of 17 million tons per year. Bandar Imam alone has an annual production capacity of 6.5 million tons, making it the largest such complex in Iran.
While Iran’s nominal petrochemical capacity stands at 96 million tons annually, its actual capacity is lower, at 72 million tons, ranking second in the region after Saudi Arabia. Depending on global prices, the sector generates between $13 billion and $17 billion in annual export revenues.
In addition to production facilities, Israeli strikes reportedly hit two power generation units in Mahshahr, leading to a widespread electricity outage across the petrochemical zone—effectively halting operations. Iranian officials estimate that approximately $30 billion has been invested in developing the Mahshahr petrochemical hub.
By targeting these sectors, Israel is not only inflicting immediate economic damage but also striking at the pillars of Iran’s long-term industrial development. The pattern is clear: the campaign is designed to degrade Iran’s economic resilience by hitting its largest, most visible, and most productive assets.
