Iran plans exclusion zone near Hormuz and lowers gasoline prices

According to media reports, Iran wants to set up an “exclusion zone” near the strategically important Strait of Hormuz. In the coming days, “an exclusion zone outside the Strait of Hormuz will be announced,” said the head of the Supreme National Security Council, Mohsen Resaei, on Iranian state television on Sunday.

“This zone begins at the US Navy blockade line and includes areas of the Persian Gulf,” he said. “Any ship that enters this new zone will be placed on a sanctions list.”

According to state media, Mohajerani explained that the price in this third stage “will double to 10,000 toman (the equivalent of 3.9 cents) from September 8th.” The prices for the first two levels therefore remain unchanged. The toman is an informal currency unit. One Toman is equal to ten Iranian Rials.

Iran is one of the world's largest oil producers. Thanks to a subsidy system, fuel is relatively cheap in the country. Any price change is therefore considered politically sensitive.

Shipping traffic at lowest level since May

After mutual attacks by the US and Iran on tankers, shipping traffic in the Strait of Hormuz has plummeted to its lowest level since May. In the past ten days, an average of only ten cargo ships per day have passed through the strait, according to data from analysis company Kpler.

On Saturday only two ships crossed the important trade route, on Sunday there were six. A tanker from Saudi Arabia had to turn back while trying to leave the strait, LSEG data showed. ‌In addition, according to ⁠Kpler, not a single supertanker has left the Strait of Hormuz since Wednesday.

Meanwhile, US President Donald Trump posted a map of the Strait of Hormuz on his high-reach Truth social account on Sunday with the caption “New U.S. Territory.”