On reaction with concentrated nitric acid Iron transforms into a protective layer of ferric oxide .
This happens because Nitric acid is a very good oxidizing agent.
When the layer of oxide forms on the surface the reaction then further stops as the acid lacks contact with metal.
A reactive metal is now behaving passive non-reactive.
Formation of rust:
Due to the formation of a reddish-brown layer (Rust )of iron oxide which prevents its further reaction with the acid, iron is made passive with fuming nitric acid.
On the surface of iron, forms a protective coating of oxides.