Using his new Mark III 'Iron Man' armor, Stark destroys the Maggia's weapons stockpiles and an armored hovercraft. While testing his new suit at Stark Industries, Tony uses it to fend off an attack by the Maggia crime family, who have been providing weapons for the Ten Rings. J.A.R.V.I.S., Stark develops an updated and more powerful version of his armor, adding Stark Industries' new repulsor technology and flight capability. Upon being picked up by the Air Force and returning to the United States, Stark declares that his company will no longer manufacture weapons, a move disapproved by his business partner Obadiah Stane. Armed with a flamethrower and missiles, Stark uses the armor to destroy the terrorists' weapons stockpile and escape their camp, but Yinsen is killed, and the armor is destroyed. During this time, Yinsen also acts as Stark's mentor, showing him humility and telling him of the horrors his company has caused, making Stark reconsider his life.
Instead, he and fellow captive Yinsen secretly build a powered suit of armor. During a business trip to Afghanistan to demonstrate Stark Industries' new weapon, Tony Stark is kidnapped by the terrorist group Ten Rings, who orders him to build a missile for them.