Iran vows to expand Gulf restricted zone as oil exports crumble — yet Tehran says it’s ‘beating’ US blockade

The Islamic Republic of Iran is set to expand its maritime restrictions beyond the Strait of Hormuz, intensifying a tense standoff with the United States and sparking apprehension among global shipping firms and oil supply chains. Mohsen Rezaei, a 71-year-old hardliner and secretary of Iran’s Supreme National Security Council, announced on Sunday that Tehran would soon declare a new “restricted zone” in the Arabian Gulf, beginning at the US naval blockade and extending into the Gulf.

Ships entering the area would be added to an Iranian sanctions list, Rezaei warned. The move arrives as Iran asserts it has effectively thwarted Washington’s efforts to control maritime traffic around the Strait of Hormuz. Iran claims full control over the strait, describing the sharp decline in shipping traffic as proof of Tehran’s success.

According to Iranian figures, only a handful of vessels, mainly humanitarian ships, currently traverse the strait, compared to over 100 before the US blockade. Tehran also claims to have recently tested an anti-ship missile against a US vessel, a claim Washington disputes. The new restricted zone would extend Iran’s maritime enforcement further from the narrow chokepoint, a significant development given that the Strait of Hormuz is a crucial international shipping route.

However, Iran’s assertion of “beating” the blockade must be viewed against the economic reality. The US naval blockade has halted much of Iran’s crude exports since mid-July, with Iranian crude shipments plummeting from roughly 2 million barrels per day in March to between 220,000 and 255,000 barrels per day in August. This has severely impacted Iran’s access to foreign currency, particularly as China remains the country’s primary major customer for crude.

US pressure has also weakened Iran’s leverage over the Strait of Hormuz. Despite Tehran’s expectations, diversified global supplies and market adjustments have reduced the impact compared to what Iranian strategists may have anticipated.