A combined XRD, Mössbauer, SEM, STXM and NMR study of naturally oxidised, ball milled iron powders is presented. The XRD patterns show the peaks of the bcc-Fe phase with the line widths increasing with the milling time. This corresponds to a flattening of the crystallites, as confirmed by SEM, and increased strain due to the accumulation of defects. The effect is consistent with the variation of the Mössbauer line-widths with the milling time. Scanning Transmission Xray Microscopy (STXM) measurements provided oxygen maps of the particles and revealed that the dominant oxide in the nanometric oxide layer is magnetite. The 57Fe spin echo NMR study reveals a dominant signal corresponding to a bcc-Fe core and a much weaker resonance corresponding to a magnetite amount of less than 1%.