Iodine pentoxide (I2O5), also known as diiodine pentoxide, is a strong oxidizer which has been recently proposed as an iodine-rich oxidizer in nanoenergetic formulations, whose combustion products lead to molecular iodine as a biocidal agent. However, its highly hygroscopic nature hinders its performance as a strong oxidizer and an iodine releasing agent and prevents its implementation. In this work, we developed a gas phase assisted aerosol spray pyrolysis which enables creation of iron oxide passivated I2O5. Transmission electron microscopy elemental imaging as well as temperature-jump mass spectrometry confirmed the core shell nature of the material and the fact that I2O5 could be encapsulated in pure unhydrated form. Combustion performance finds an optimal coating thickness that enables combustion performance similar to a high performing CuO based thermite.