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The further you go from the better the deposits become so any iron patch you find way out will be bringing you a whole lot more (they are bigger and last longer).
Of course, don't go so far out that you can't get rails up to there but a couple screens worth on the map view is enough to see some significant changes.
Take a few minutes to cry then start over. Not everything is a winable scenario, specially when you spend on non-essentials too soon.
Edit: sorry this isn't funny. Try to get to flamethrower turrets as best you can by scraping together some steel with whats left of your iron. This will save a lot of bullets.
Can you reach the next patch with yellow belts that you can borrow from your bus? If so delay the railway and go mine that tiny patch and secure it with a crude pipeline and flamers and dragons theeth walls.
Borrow pipes from your bus as well if you must.
Just be careful not to stand in their fire.
Exploring is your best option for finding more iron (and every resource).
If you don't have iron plate to make steel and therefore ammo you'll have to rely on other things like flame throwers and lasers if you got some made. Lasers use power instead of iron and flame throwers use oil instead bullets.
If you don't have these things made yet you'll want to take that small iron patch and use it to make ONLY lasers, flame thrower turrets, and poison capsules. Bonus points if you have laser defense modules in your personal armor all ready.
Take a couple dozen laser turrets and string a long line of large power poles from your power supply to a location near the huge nest and set up a laser bunker that you can run back to.
Then use the lasers to turret creep until you are just outside the range of the closest worms. Run out and back to get the attention of the loose bugs so that the huge swarms goes splat with your laser turrets.
Once the wave is cleared, run out as far as you safely can and throw 3 poison capsules so that you get all the worms that you can with the cloud (3 poison capsules will take out even the largest worms) but especially the ones nearest your lasers.
Retreat and wait for the poison capsules to kill the worms and then start creeping forward with the power poles and the laser turrets the lasers will eat the bugs that rush you and as you get close to the spawners eventually them as well.
When your farthest laser gets too close to the next batch of worms repeat the poison capsule trick again. You'll be able to clear that entire mess. It will be slow and tedious but it can be done. If you don't have enough iron ore to make rails to run a train out there drop a few miners on the patch and let them fill a couple of chests while you set up a wall and laser turrets to defend that spot.
Fill your car with iron ore and run it back to your smelters and use it to make only rails until you get enough to run rails out to the patch. Set up your train to automatically bring ore back to your smelters and use the iron and steel that you get to completely defend that patch with lasers and flame thrower turrets (you can set up an oil train to deliver oil to the outpost).
Once that patch is yours an you can defend it use the iron from that patch to make what you need to set up your next iron outpost and go ore patch hunting again. Once you get another large patch or 2 you should be set up to where you can start concentrating on research again.
You can recover from that but you'll have to be very careful.
Once you have that iron patch prioritize its use to expand your defense capabilities