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Overall Fe2O3 + 3CO → 2Fe + 3CO2

In words, iron oxide reacts with carbon monoxide to produce iron and carbon dioxide.

However it starts with 2 C + O2 → 2 CO. Carbon reacts with oxygen to produce carbon monoxide.

Then 3 Fe2O3+ CO → 2 Fe3O4+ CO2 the carbon monoxide reduces the iron.

Then the reaction continues to reduce more iron Fe3O4 + CO → 3 FeO + CO2

Eventually the iron is reduced to pure iron by more carbon monoxide as the temperature increases FeO+ CO → Fe + CO2

There are other side reactions.

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