Iran Announces Plan for New 'Exclusion Zone' Near Strategic Strait of Hormuz as U.S. Denies Attack Claim

Iran's new security chief has declared Tehran intends to establish an "exclusion zone" outside the Strait of Hormuz targeting vessels it believes are attempting to transit the critical waterway — a move that threatens to further escalate tensions in the region.

Mohsen Rezaei, the newly appointed head of Iran's Supreme National Security Council, made the announcement on Sunday in an interview with state broadcaster IRIB. The comments came just one day after the U.S. struck three Iranian oil tankers in response to Tehran launching ballistic missiles at American warships.

"The new zone will begin from the line of the U.S. naval blockade, extend toward the Strait of Hormuz, and from this side continue into the Persian Gulf," Rezaei said. "Any ship that enters this area with the intention of passing through the Strait of Hormuz and is identified will be placed on our sanctions list."

Details Remain Vague

Rezaei offered few specifics about the proposed zone, including its exact dimensions or when it would be formally declared. "It should be announced in the coming days and weeks," he said.

The announcement comes as both countries claim to be in control of the strait, through which roughly one-fifth of the world's traded oil typically passes. The waterway has become the central flashpoint in the intermittent conflict that began February 28 with U.S. and Israeli strikes on Iran.

U.S. Dismisses Iranian Attack Claim

In a separate incident Sunday, Iran claimed it had struck an unmanned U.S. vessel attempting to enter the Strait of Hormuz. The U.S. military dismissed the claim as a "total lie," according to reports.

The back-and-forth highlights the fog of war in the region, where both sides have traded accusations and military actions in recent days. Fighting resumed last week following a month of relative calm, with at least five people killed in a U.S. bombardment that again drew attention to areas along Iran's southern coast.

Blockade and Counter-Blockade

The proposed exclusion zone appears to be Iran's response to a weekslong U.S. naval blockade aimed at Iranian ports and preventing Tehran from shipping oil. The U.S. military has said over 20 warships are supporting the blockade, which has redirected 92 commercial ships and disabled three.

The Trump administration appears to have adopted a dual-pronged approach: responding militarily to attacks on the strait while going after foreign financial institutions that handle Iran's money.

U.S. Energy Secretary Chris Wright said Sunday that approximately 9 million barrels of oil a day are currently getting through the strait, helping to relieve pressure on energy prices. He estimated that total regional oil flows are "probably two-thirds or more of pre-conflict levels."

However, those flows depend heavily on the U.S. Navy's presence to escort tankers and protect against potential Iranian attacks. Wright expressed hope that other countries would eventually support these naval efforts.

Iran's Economic Resilience

Rezaei claimed Sunday that Iran continues to sell significant quantities of oil despite the blockade. "Every day we are selling one million, one and a half million (barrels), as if Iran's oil production and trade are continuing as usual," he told state TV.

Iran has found ways over decades of sanctions to circumvent restrictions and get oil to buyers, helping to ease growing economic pressures. The country's currency hit another record low earlier this week, but Tehran's new hard-line leadership has signaled a willingness to dig in.

Collapsed Diplomacy

Rezaei also expressed wariness about international mediation efforts following the collapse of negotiations with the U.S. A memorandum of understanding signed in mid-June began falling apart within days as each side accused the other of violations.

"We had trusted our friends in Pakistan, Qatar or Oman, thinking that since they had stepped in as mediators, one of a mediator's responsibilities is that if one side violates the agreement, they should stop them," Rezaei said. "We are now pursuing diplomacy with guarantees."

Regional Impact

The Strait of Hormuz was considered an international waterway before the war began. Its closure or significant disruption has global implications for energy markets and the world economy.

As the standoff continues, neither side appears willing to back down. The U.S. continues to introduce new measures to increase economic pressure, while Iran uses its control over the strait as leverage.

The coming days and weeks will likely determine whether the announced exclusion zone becomes a reality and what response it provokes from the United States and its allies in the region.