Yes it can be oxidized from its soluble form to an insoluble form that will precipitate. In municipal water treatment, the raw water is often pumped through a cascade aerator to get oxygen into the water and create the oxidation reaction. You can also inject a strong oxidizing solution into the water.
A homebrewer can perform a similar aeration by spraying the water into the pot through a fine sprayer. It may take several recirculations through the sprayer to get enough oxygen in there, so a pump system might be needed.
Another option is to run the water through a 'greensand' filter that oxidizes the iron.
In all cases, the water needs to be filtered or allowed to sediment all the precipitate before the water can be used.