Strait of Hormuz tensions intensified on Wednesday after Iran said it had attacked more than 10 vessels attempting to cross the strategic waterway, sending oil prices higher.
Tehran also announced plans to expand the area beyond the Strait of Hormuz where ships will be required to obtain permission before entering.
Iran said the attacks were carried out in retaliation for US strikes on five Iranian oil tankers on Tuesday, while warning the United States against further action.
Iran cites retaliation for US strikes
Iran’s Foreign Ministry described the US attacks on Iranian commercial vessels as a clear threat to regional and international peace and security, citing the country’s right to “legitimate defence”.
The Islamic Revolutionary Guard Corps (IRGC) said it had targeted two US warships, eight oil tankers and 10 other commercial vessels attempting to cross the Strait of Hormuz.
The waterway has been effectively closed by Tehran since the Middle East war began on 28 February, following US-Israeli strikes against Iran.
The UK Maritime Trade Operations (UKMTO), which operates under the UK Ministry of Defence, reported vessels on fire at several locations. It did not clarify whether there were casualties or environmental damage.
Iranian state television also reported an explosion in the southern part of the country near the Strait, although it did not provide an explanation for the incident.
New restricted maritime zone announced
For oil market participants, the developments represent a “new escalation”, according to Arne Lohmann Rasmussen, an analyst at Global Risk Management.
Before the war, vessels could pass freely through the Strait. Iran now requires ships to obtain permission to cross, a demand rejected by the United States and regional governments.
On Sunday, Tehran announced plans to establish a new “prohibited zone” near the strategic shipping route within several days.
The IRGC said the zone would extend into parts of the Gulf of Oman and the Arabian Sea. Any vessel entering without permission would face sanctions, it warned.
The US military, meanwhile, has imposed a blockade on Iranian ports in the Gulf in retaliation for the closure of the Strait of Hormuz.
Oil prices rise above $100
Shipping through the strategic waterway has been almost paralysed since the war began, creating significant disruption for international energy markets and repeatedly pushing crude prices higher.
Brent crude rose 3.4% on Wednesday to $101.21 per barrel, moving above the $100 mark for the first time since July.
West Texas Intermediate also climbed sharply, rising 3.25% to $96.05 per barrel.
The disruption has increased concerns over global energy supplies, given the importance of the Strait to international oil and gas shipments.
Trump predicts war will end after US elections
More than six months after the war began, US President Donald Trump predicted on Wednesday that the conflict would end “immediately after” the midterm congressional elections in early November.
Trump claimed that Iran, which he said “cannot hold out much longer”, was desperately attempting to influence the outcome of the US elections.
Hours earlier, the IRGC said the war would end when Washington stopped threatening Iran and accepted a number of Tehran’s demands.
These include ending any new threats, withdrawing Israeli forces from Lebanon, ending the blockade of Yemen, releasing $24 billion in frozen Iranian assets and avoiding interference with Iran’s nuclear and ballistic capabilities.
Israel says Iran nearing collapse
Israeli Prime Minister Benjamin Netanyahu said the Islamic Republic was on the verge of collapse.
“There is still work to be done,” Netanyahu said, adding that the main objective was to overthrow what he described as Iran’s “terrorist regime” and claiming that Israel was “very close” to achieving that goal.
His comments came weeks before parliamentary elections in Israel that are seen as important for his political future.
Nuclear tensions deepen
Iran’s nuclear programme remains a major source of tension between Tehran and Western governments.
The Center for Strategic and International Studies (CSIS) has reported intensified construction activity over the past year at Mount Kolang in central Iran, where the United States suspects an underground nuclear facility could be located.
Trump has previously threatened that the site could be targeted.
Meanwhile, the International Atomic Energy Agency’s (IAEA) Board of Governors voted on Wednesday to refer Iran’s nuclear file to the UN Security Council over what it described as Tehran’s failure to meet its obligations.
Negotiations remain stalled
A preliminary agreement, described as a memorandum of understanding, was signed by the US and Iranian presidents in mid-June and was theoretically intended to pave the way for an end to the war.
However, the agreement collapsed in July, and negotiations have remained deadlocked since then.
Also read: Trump says Iran war will not end before US midterm elections
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