Aims: Contamination  with  heavy  metal  (HM)  is  a  severe  environmental  issue.  Therefore, there is a pressing need to create environmentally safe and cost- effective HM bioremediation approaches. Methods and Results: Three iron-tolerant fungal strains were isolated from sewage-irrigated soils, molecularly identified and deposited in the GenBank as Aspergillus flavus  MT639638,  A. terreus  MT605370  and  Fusarium oxysporum  MT605399.  The  fungal growth, minimum inhibitory concentration (MIC), tolerance index (TI), removal efficiency, bioaccumulation, and enzymatic and non-  enzymatic antioxidants  were  determined.  Based  on  MIC  values,  A. flavus  MT639638  was  the  most  resistant strain. F. oxysporum displayed the highest percent removal efficiency (93.65% at  4000 mg L-1) followed by A. flavus (92.92%, at 11,000 mg L-1), and A. terreus (91.18%  at 3000 mg L-1). F. oxysporum was selected based on its highly sensitivity for further  characterization of its response to Fe(II) stress using TEM, SEM and EDX, in addition to HPLC analysis of organic acids. These analyses demonstrated the localization  of bioaccumulated Fe(II) and ultrastructural changes induced by iron and indicated  induction release of organic acids. Conclusions: Our fungal strains showed an effective capacity for removal of Fe(II)  via bioaccumulation and biosorption mechanisms which were supported by instrumental analyses. The iron tolerance potentiality was mediated by induction of selected antioxidative enzymes and biomolecules. Significance and Impact of the Study: This study depicts a potential utilization of  the three fungal strains for the bioremediation of iron-  contaminated soils.