Iran Plans New Exclusion Zone Near Strait of Hormuz Amid Rising Tensions

Iran plans to announce a new maritime exclusion zone outside the Strait of Hormuz in the coming days.

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, stated Monday that Tehran intends to stop vessels attempting to transit the waterway without Iranian permission. Rezaei said Sunday the restricted zone would begin where the US blockade of Iranian ports starts and extend into the Gulf. Any vessel entering this new zone will be placed on a sanctions list, which will have consequences for its insurance and future passage through the strait.

Rezaei also noted that maps for new transit routes through the Strait of Hormuz have been agreed upon with Oman and should be signed in the coming days. He stated these maps outline a new international corridor which lies in Iranian and Omani waters and in which Iran will have management. The announcement follows renewed exchanges of fire between Iran and the United States over the weekend.

Iran threatened Sunday to deliver a more intense and more painful retaliation after the U.S. struck three Iranian oil tankers in the Persian Gulf and Gulf of Oman. Iranian state media reported Sunday that the Islamic Revolutionary Guard Corps attacked a remotely-operated U.S. military vessel attempting to enter a restricted area in the Strait of Hormuz.

U.S. Central Command did not immediately confirm or deny this purported attack. The latest clashes began with U.S. raids last week, which the U.S. said were in response to Tehran hitting commercial ships. Mohammad Bagher Ghalibaf, speaker of the Iranian parliament, posted to X on Monday, stating that American oil and gas companies across the waters and facilities share exposure to strikes.

Brent crude, the international standard for oil, briefly hit nearly $97 per barrel early Monday, continuing an 8% rise from the previous week. The price of Brent crude was up 1.79% at $98.00 at 11:09 a.m. EST. Goldman Sachs warned oil prices could surge to $120 per barrel if attacks on Middle East shipping do not stop.