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Wage crisis hits 27,000 workers as Iran's top steel plant remains crippled

May 7, 2026, 10:46 GMT+1

Over 27,000 workers at the Mobarakeh Steel Company – Iran's largest steel producer – remain in limbo following missile strikes that have paralyzed production at the sprawling Isfahan complex, according to the news site Rouydad24.

The facility, including a power substation and an alloy steel production line, was hit twice during Israeli-US attacks earlier this year, causing major disruptions to production and operations at the complex.

The report said only about 2,000 employees – mainly management and administrative staff – have returned to the site since the attacks during the war involving Iran, the US and Israel that began in late February.

Many workers have reported a sharp drop in income. Specialized technical staff who previously earned more than 100 million tomans a month – about 1 billion rials, or roughly $568 – are now receiving wages close to the legal minimum, around one-fifth of their previous pay, according to the report.

The pay cuts come as management seeks state support and unemployment insurance. Workers told Rouydad24 they fear these reduced wage calculations will permanently lower their future insurance benefits if formal mass layoffs are eventually finalized.

From steel production to the gig economy

With production lines largely inactive, a labor exodus is underway. Many former steelworkers in Isfahan have turned to driving for ride-hailing platforms to survive, while others have migrated to factories in Yazd and Khorasan provinces in search of steady work.

The uncertainty has triggered a surge in online job-seeking channels specifically for former Mobarakeh project workers. This shift highlights a deepening labor crisis in a sector that was already struggling with skilled worker emigration before the conflict began.

Mobarakeh Steel is one of Iran’s most strategic and profitable assets, and experts warn the fallout could destabilize the broader economy. Current estimates suggest it will take at least four years for the facility to return to its pre-war operating capacity.

While the head of the government’s information office insists that salaries for over 30,000 workers are being paid in full, the company’s own public relations office was more cautious, telling Rouydad24 that while they could not confirm specific allegations, "war conditions naturally change everything."

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Women protesters held in basement ward at northeastern Iran prison

May 6, 2026, 10:24 GMT+1

At least 30 women detained during recent protests and a security crackdown linked to Iran’s conflict with the US and Israel are being held in overcrowded, unsanitary conditions at Vakilabad prison in northeast Mashhad, the rights group HRANA reported.

The detainees include women swept up during the nationwide uprising and others arrested following the military conflict involving Iran, the US, and Israel that began in February.

According to the HRANA report, 23 women are being held in the Aramesh ward, described as a basement-like structure with low ceilings and minimal ventilation.

Former detainees told the group the cramped conditions, which one compared to an ant nest, frequently trigger breathing problems and panic attacks.

Seven other women are currently being held in a quarantine unit characterized by poor sanitation and sewage odors. HRANA said that prisoners face a shortage of beds, limited medical treatment, and are often denied phone calls and family visits during their interrogation.

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Serious charges and legal limbo

The reports of poor conditions coincide with concerns over the legal status of those currently held in the facility. Iran International reported earlier that three female political prisoners – Mahboubeh Shabani, theatre actress Sima Anbaei Farimani, and Azar Yahou – remain in legal limbo at the prison.

These women face severe charges including enmity against God, conspiracy against national security, and alleged links to Israel. Despite weeks in detention, they have been denied access to lawyers and have not been informed of the status of their cases.

Mahboubeh Shabani, Sima Anbaei Farimani, and Azar Yahu (undated)
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Mahboubeh Shabani, Sima Anbaei Farimani, and Azar Yahu

Escalation of executions

The crackdown in the northeast reflects a wider national trend of severe punishment for security-related detainees. Center for Human Rights in Iran reported that at least 28 prisoners accused in political and security cases have been executed across Iran in the past 50 days.

Of those executed, 13 were individuals detained during the recent winter protests.

China keeps supplying drone parts to Iran and Russia despite US sanctions - WSJ

May 6, 2026, 09:07 GMT+1

Chinese companies continue to ship drone-related parts and other dual-use goods to Iran and Russia despite US sanctions, the Wall Street Journal reported on Tuesday, citing customs data, former US officials and weapons analysts.

The report said small Chinese firms were openly marketing items including engines, batteries, fiber-optic cables and computer chips that can be used in military drones.

The newspaper highlighted Xiamen Victory Technology, a Chinese company that offered to sell German-designed Limbach L550 engines, which the US has barred from export to Iran and Russia. The engines have been linked to Iran’s Shahed-136 attack drones, which Russia has used in Ukraine, the report said.

The Shahed-136, Iran’s main attack drone, has a range of about 1,000 miles and costs an estimated $20,000 to $50,000 to produce, making it a cheaper alternative to cruise missiles.

According to the Journal, the company sent the marketing email in March during the Iran-Israel war that began in February and has since moved into a ceasefire.

“We are deeply shocked and outraged by the aggression against Iran, and our hearts are with you,” the email said, while promoting the sale of the engines.

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Chinese firms adapt to sanctions

China’s Foreign Ministry told the Journal that Beijing enforces controls on dual-use exports in line with its laws and international obligations.

The report said US officials are increasingly concerned because many drone parts are now made in China by smaller firms that have limited exposure to the US financial system and are less vulnerable to sanctions.

The Journal also said Chinese exports of lithium-ion batteries and fiber-optic cables to Russia and Iran rose sharply as both countries expanded drone production and use.

US officials told the newspaper they are also trying to curb Iran’s oil revenue to limit funding for drone and missile programs.

The Wall Street Journal reported that some Chinese firms previously hid shipments through mislabeled cargo or Hong Kong shell companies, but analysts and former officials said some exporters are now acting more openly.

US says not seeking conflict with Iran as it deploys shipping protection mission

May 5, 2026, 13:24 GMT+1

US War Secretary Pete Hegseth said the United States is not seeking conflict with Iran as it launches a temporary operation to protect shipping in the Persian Gulf.

“We’re not looking for a fight,” Hegseth said, describing the effort as defensive and limited in scope.

He said the operation, known as Project Freedom, aims to restore the flow of commerce through the Strait of Hormuz and protect commercial vessels from Iranian aggression.

“Project Freedom is defensive in nature, focused in scope and temporary in duration, with one mission, protecting innocent commercial shipping from Iranian aggression,” he said.

Hegseth said US forces would not need to enter Iranian waters or airspace, adding the mission is designed to secure global energy routes and support international trade.

He warned Iran against interfering with shipping. “If you attack American troops or innocent commercial shipping, you will face overwhelming and devastating American firepower,” he said.

Hegseth added the operation would eventually be handed over to international partners, saying the waterway is more critical to the global economy than to the United States.

Trump says Iranian people must have guns to fight

May 5, 2026, 13:11 GMT+1

Iranians need access to weapons to challenge their rulers, President Donald Trump said on Monday, arguing that protesters would fight effectively if armed but are currently outmatched by government forces.

“They have to have guns. And I think they’re getting some guns. As soon as they have guns, they’ll fight like, as good as anybody there is,” Trump said in an interview with The Hugh Hewitt Show.

Trump also suggested that US military pressure had already significantly weakened Iran and that further action could be completed within a short timeframe.

“We’ve taken out much of what we’d have to do, probably another two weeks, two weeks, maybe three weeks,” he said.

Trump said large numbers of Iranians would struggle to confront armed forces without access to weapons.

“You can’t have an unarmed population against people with AK-47s,” he said, adding that even hundreds of thousands of protesters would struggle against a smaller armed force.

He said previous protests had been met with heavy force, citing the deaths of tens of thousands of demonstrators, and suggested this had made him cautious about encouraging renewed unrest.

“I’m very torn on it, because they lost 42,000 people in the first two weeks. I don’t really want to see that,” Trump said.

Past weapons transfers

Trump said during a phone interview with Fox Sunday in early April that his administration had previously attempted to send firearms to Iranian protesters but that the effort did not reach its intended recipients.

“We sent guns to the protesters, a lot of them. We sent them through the Kurds. And I think the Kurds took the guns,” he said.

He repeated similar complaints, saying he was “very upset with a certain group of people” and warning they would “pay a big price.”

Several Kurdish groups have denied receiving such shipments.

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    Trump rhetoric signals shift toward conflict, experts say

Calls in Washington to arm Iranians

Republican Senator Lindsey Graham has also urged the administration to pursue a policy of directly arming Iranian civilians.

“If I were President Trump and I were Israel, I would load the Iranian people up with weapons so they can go to the streets armed and turn the tide of battle inside Iran,” Graham said in an interview with Fox News on Monday.

“We don’t need American boots on the ground. We’ve got millions of boots on the ground in Iran. They just don’t have any weapons,” he added.

Graham described the idea as “a Second Amendment solution,” suggesting that arming civilians could help bring down the government without direct foreign military involvement.

He also called for alternative channels to deliver weapons, urging the administration not to rely on Kurdish intermediaries.

Military pressure and internal divisions

Trump framed his comments within a broader assessment that Iran’s military and economic capacity had been significantly weakened.

“They have no navy. They have no air force. They have no anti-aircraft,” he told The Hugh Hewitt Show.

Trump added that financial pressure may have affected the government’s ability to pay its forces.

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“We don’t think they’re paying their soldiers and their Guard anymore,” he said.

He also suggested divisions within Iran’s security structure, drawing a distinction between the regular army and other forces.

“We purposefully have not gone after them too much, because we think that they’re much more moderate,” Trump said.

At the same time, he said the United States was not seeking to dismantle the country’s military institutions entirely.

“We’re not looking to decimate the army,” he said, referring to past regional experiences.

“You know, when they did Iraq... and the worst thing was they got rid of the all the leaders, so nobody knew who the leader was. And then all of a sudden, you had ISIS. We don’t want to do that.”

Nuclear focus remains central

Despite discussing internal unrest, Trump said that preventing Iran from acquiring nuclear weapons remains the central objective of US policy.

“The one thing I will say is they will never have a nuclear weapon,” he said.

Trump said any potential agreement would require the return of highly enriched uranium and limits on missile development, though he stressed that nuclear restrictions remain the priority.

Iran labor outlet pushes back as officials downplay war-related job losses

May 5, 2026, 12:19 GMT+1

Iran’s labor-focused news agency ILNA has pushed back against government efforts to downplay the economic impact of the recent conflict, citing experts who warn that actual unemployment figures far exceed official estimates.

The dispute highlights a growing rift between state reporting and the reality described by workers following the conflict that began on February 28.

While some officials have attempted to minimize the scale of the crisis, labor advocates and citizens report a significant downturn across key industrial sectors.

Dueling unemployment estimates

The scale of the crisis remains a point of intense domestic debate. Last month, Gholamhossein Mohammadi, Deputy Minister of Cooperatives, Labor, and Social Welfare, admitted the war had directly destroyed over 1 million jobs and that an additional 2 million people had lost work through indirect effects.

However, some lawmakers have moved to discredit these higher figures. Lawmaker Meysam Zohourian said people should be aware that it is falsely claimed 2 million have become unemployed due to the war.

He added that social security data suggests only about 100,000 unemployment insurance cases may be added. Labor Minister Ahmad Meydari offered a different figure, stating that 150,000 people had registered for unemployment benefits in recent weeks.

Industrial fallout and uncounted layoffs

ILNA and labor activists argue that official data is misleadingly narrow. Alireza Mahjoub, a prominent labor representative, has reported hundreds of thousands of job losses that remain uncounted in state insurance tallies.

The steel and petrochemical sectors have been particularly hard hit. Labor expert Hamid Haj Esmaeili told the Fararu news outlet that the Mobarakeh Steel facility was directly targeted during hostilities.

He said that the plant once employed 28,000 people and that many of them no longer have jobs. He added that layoffs are spreading through the supply chain and affecting petrochemical plants, including the Marvdasht complex in Fars province, where former workers have reported being unemployed for months.

Labor economists cited by ILNA warn of a chain reaction triggered by supply chain disruptions, damaged infrastructure, and the skyrocketing cost of raw materials. In addition to direct layoffs, many firms in the construction and manufacturing sectors have been forced to drastically reduce working hours or implement partial shutdowns due to a lack of inputs.

Reports of food insecurity and rising costs

Direct accounts from citizens to Iran International show the growing financial strain on households. Viewers reported widespread layoffs across production and service units, including one report from the northern city of Rasht where an estimated 2,000 people were let go.

The economic pressure has led to reports of food insecurity, with some families forced to reduce consumption to a single meal per day.

Residents also described a growing inability to pay rent and soaring prices for basic goods. One viewer noted that state television recently ran a caption acknowledging the state of war and high prices, suggesting the public should become accustomed to the current conditions.