During inflammation the body will retain iron and bind it with ferritin, which prevents it from oxidizing. So iron is present but biounavailable. You see this all types of inflammatory conditions ranging from UC/IBS to rheumatoid arthritis. So the body largely controls things so iron toxicity doesn't go overboard. The body also retains iron because this inflammation is telling the body there's bacteria and viruses present, so it restricts access to iron because iron is often the limiting mineral needed for these infections to spread further.
I think H202 is upregulated because the superoxide anion is formed from several sources - excessive mitochondria from fission with impaired metabolism, and from inflammation via NADPH oxidase. Although H2O2 can serve as a source of oxygen for oxygenation of tissues, you have to remember that the rate of formation of H2O2 outpaces the rate of degradation of it. The body also has other more efficient means of providing oxygen when low oxygenation is present, and this is why angiogenic factors are often upregulated in inflammatory diseases, which causes more bloodflow and therefore more oxygen to be delivered to the tissues.
The order of operation here isn't very important. Missing oxygen or iron (or too much of each) could drive mitochondrial fission, or too much H202 could drive fission, or too much fission can drive too much H202. It doesn't really matter. You could have a heavy metal toxicity that was driving this process. Or it could be radiation causing excess formation of superoxide and H2O2 which caused fission to occur. Maybe it could even start from a histidine deficiency. Maybe copper poisoning itself could cause it. Tons of ways to get that cycle started. Your cycle of things overall looks to be right, but it just doesn't really matter that much as long as you have too much mitochondrial mass at some point because that's the one issue that won't fix itself over time (other issues will fix themselves as long as you limit exposure to the cause, like in the case of copper poisoning or heavy metal exposure). Once the cycle starts, the start doesn't matter as much.
What you end up with is a condition of too much fission, too much mitochondrial mass, and too many defective mitochondria, and it can only be treated by upregulating mitophagy. All the other problems won't get fixed once this problem has arisen. It's the blockade in the way of healing. You can't get iron or copper metabolism back on track when it's being fudged up from this.
You need to force the body to eat those guys up. Just check out r/fasting on reddit, I've found quite a few success stories on there of people fixing IBS with longer fasts.
