Red iron oxide is not particularly toxic or dangerous. It does, however, stain surfaces and textiles.
Iron Oxide Red
Red iron oxide is used as a catalyst in composite and whistling rocket propellant and Candy rocket propellant formulations. It is also added to some glitter formulations and used for thermite, a mixture that produces enormous amounts of heat, forming molten iron. Due to its catalytic properties, it is also added to primes, and even colored star compositions to increase their ignitability and burn rate.