Density functional calculations of the electronic structure of a Fe linear chain encapsulated inside single-wall chiral carbon nanotubes with the chiral indices (n,n/2) were performed for the first time. It is found that initially semiconducting nanotubes with Fe{sub 5} and (4,2), Fe{sub 5} and (6,3) and Fe{sub 5} and (8,4) become conductive after the encapsulation. In the case of Fe{sub 5} and (8,4) only the iron chain is conductive. High magnetic anisotropy remains almost similar to that of a single chain of iron atoms for all nanotubes under consideration. As the chiral index n is increased the magnetic moment on iron varies non monotonically, so that for the nanotube with Fe{sub 5} and (6,3) it reaches the magnitude of the magnetic moment in the single linear chain of iron atoms.