It is true that rusting is a chemical reaction between iron and oxygen. When some metals "rust", a layer forms which prevents more oxygen from reaching the metal. Hence the "rusting" stops.
However, this is NOT the case with iron. The difference is that when iron rusts, it makes flakes of rust. When these flakes chip off, more iron is exposed to the oxygen in the air. Therefore rusting continues.
So you need to somehow stop the oxygen from reaching the iron / steel. One way of doing this is to apply paint.
I know this because I am a science teacher at Scholastic Islamiah school.
p.s. Although I haven't tried it yet but applying one of those paint markers (e.g., SNOWMAN) may provide a quick fix.