In our study of the electron energy bands of ferromagnetic and paramagnetic iron we have found an explanation of the isomer shift anomaly in Fe near its Curie temperature (770°C) which seem to be the natural way of accounting for this phenomena. It was shown that 0.2 electrons in the Van Hove singularity of the majority spin band are removed from this singularity just below 770°C. 10% of these electrons go preferentially into conduction‐like states thus increasing the Isomer shift by the amount found experimentally. The magnetic specific heat of iron and other consequences of this explanation are discussed.