Answer:
Yes, it can. All chemical elements can ionize. Iron is in the d block of the periodic table, meaning it has a tendency to have multiple oxidation states, namely 2+ and 3+. The 3+ oxidation state is more prevalent because stripping 3 electrons from an iron atom is energetically favorable, as it creates a stable, half-filled d-orbital shell. A physical example of this is rust, or iron (III) oxide (Fe2O3), which is an ionic compound. Many ionic iron compounds impart a reddish color, like the blood in our veins. Every molecule of hemoglobin, responsible for the transfer of oxygen throughout our body, has a central iron ion.
(On a side note, many sea-born animals have blue blood, because their blood has a central copper ion, and if you know some about chemistry, copper ionic solutions impart a blue color.. kinda cool huh? Well, to me at least.)