The trouble could come from numerous angles.
As others note, not all plankton is created equal; just as in human bodies a balance between bacteria and fungi create healthy conditions, getting a dramatic boost to one kind of plankton may throw things out of whack far down the road.
Perhaps an iron-hungry form of plankton (or algae) suddenly gains a foothold in the region, depleting other nutrients and sunlight from the existing balance of critters. As the iron levels go back to baseline and the opportunistic plankton gets absorbed into the food chain, now the existing food base is gone, just as a huge population spike of higher-on-the-food-chain species is ready to chow down.
You see this sort of effect in gulf "dead zones" where fertilizer (iron sulfate is definitely fertilizer in this case) has killed the existing balance and will take many years to reverse.
That said, perhaps some good could come of this type of practice. It's too bad this sort of vigilante experimentation is the only kind that can go on- if scientific bodies would endorse more research on limited scales, we'd have a lot more data for the potential damage.