In July 1939, Steele was posted to the mobilization branch of the
War Office Staff. He signed the executive signal for the mobilization of the army. Promoted to the acting rank of major-general on 15 February 1941, he became
General Officer Commanding (GOC) of the
59th (Staffordshire) Infantry Division, a second line TA formation. Made an acting lieutenant-general on 8 April 1942, he commanded
II Corps until September when he became Deputy
Chief of Staff for
Middle East Command in 1942. He was promoted to major general on 20 September 1944 (with seniority backdated to 4 January 1944). ==Postwar==