Iran warns of 'economic warfare' and new missile threat as Houthis strike Saudi cities
Iran threatens maritime exclusion zone and cites new missiles amid Houthi attacks on Saudi cities wounding 73.
Iran has issued fresh warnings of "economic warfare" against the United States, saying its new missiles have already delivered a clear message to Washington. The remarks from Mohsen Rezaei, secretary of Iran's Supreme National Security Council, came as Tehran announced plans for a restricted maritime zone in the Persian Gulf.
Rezaei said the exclusion zone would extend from the point where the US blockade of Iran begins into Gulf waters. Any vessel entering the area would be placed on an Iranian sanctions list. He also said Iran's operational posture toward US warships and bases had been "fundamentally recalibrated."
The threats follow Iranian state media reports that Tehran fired the Qassem Basir missile at US vessels near the Strait of Hormuz. The US military said its warships evaded the attack. Iran has touted the missile as having improved manoeuvrability and guidance systems effective against electronic warfare.
Separately, Iran-backed Houthi militia attacked several cities in Saudi Arabia on Tuesday, wounding 73 people, according to a spokesperson for the Saudi-led coalition in Yemen. The attacks underscore fears that the six-month-old conflict could widen into a broader regional war as diplomatic efforts stall.
Despite US attempts to keep the Strait of Hormuz open, Iran has continued to disrupt shipping through the critical waterway for global oil and gas supplies. Commodity vessel traffic has slowed again this week, and Tehran has vowed to announce maps of a new shipping corridor through the strait, though details remain unclear.
The escalation comes as harsh US economic sanctions punish Iran's already strained economy. US President Donald Trump said on social media that oil prices would drop "precipitously" once the US wins the war, predicting prices below two dollars a gallon.
About one-fifth of global oil and liquefied natural gas shipments passed through the strait before the war. Iran's ability to threaten tankers from Gulf neighbours has lifted energy prices at a time when opinion polls show the war is unpopular in the US, adding political risk for the Republican Party ahead of November congressional elections.