A method for the gaseous reduction of particulate iron ore to sponge iron product in a vertical shaft reactor having a reduction zone in the upper portion thereof, a cooling zone in the lower portion thereof and an intermediate zone between the reduction and cooling zones. In order to reduce the tendency of the hot sponge iron to sinter and agglomerate, and stick to the walls of the reactor, and to give a more uniform product, a cool gas stream is introduced into the intermediate zone and caused to flow downwardly along the wall of the intermediate zone to cool the peripheral portion of the body of reduced ore flowing from the reduction zone through the intermediate zone.