Iran plans exclusion zone outside Strait of Hormuz; oil prices extend gains amid escalating Middle East conflict.
Iran plans an exclusion zone outside the Strait of Hormuz following tit-for-tat strikes with US forces that have disrupted shipping and pushed oil prices higher, while Muslim nations condemn Israeli displacement proposals for Gaza.
AI-generated summary
Iran and US forces have traded strikes on ships following a flare-up in the region. Meanwhile, the conflict in Gaza continues with mounting casualties.
Iran has said Tehran plans to establish an “exclusion zone” outside the Strait of Hormuz targeting vessels it believes are attempting to transit the strategic waterway.
The new head of Iran's Supreme National Security Council, Mohsen Rezaei, said the zone would be declared in the coming days and would stretch for some distance on either side of the Strait "begin[ning] from the line of the US naval blockade".
It comes as the US and Iran have traded strikes on ships, the latest round of attacks since the conflict flared a week ago after a period of relative calm.
US Central Command said it struck three Iranian oil tankers, including one off the coast of Kharg Island, near the nation’s oil export hub, after Iran's Islamic Revolutionary Guard Corps launched ballistic missiles at two US Navy ships.
The IRGC responded by threatening intensified strikes against US military vessels in the region, and later said it targeted three tankers that Tehran claimed were on unauthorised routes in the Strait of Hormuz, as well as three US-linked vessels in other areas.
Iran's claims to have successfully struck an uncrewed US military vessel were a "total lie", however, according to a Centcom spokesperson.
Muslim nations condemn Israeli proposal to empty Gaza
Any Israeli plan or action to remove Palestinians from Gaza would violate international law and undermine the US-backed plan for drawing down the war, eight Muslim nations said in a statement.
Israel's national security minister, Itamar Ben-Gvir, last week published a plan to encourage Palestinian migration from Gaza. Israel's defence minister, Israel Katz, has said Israel is prepared to facilitate the removal of Palestinians by sea, air or other means, and that plans remain under discussion.
The foreign ministers of Egypt, Saudi Arabia, Jordan and five other governments called the statements "inflammatory" and said they threatened the "legitimate and inalienable rights" of Palestinians and the future establishment of a Palestinian state.
The ministers warned of “grave consequences of transforming calls for forced displacement into declared policy or practical measures.”
“Such measures directly challenge international efforts to achieve peace, particularly president Donald Trump’s comprehensive plan to end the conflict in Gaza, which includes a firm rejection of forced displacement,” they added, referring to the US-backed October 2025 peace plan for Gaza.
Iran's government to raise fuel price for heavy users
Iran will raise the price of gasoline for users surpassing 110 litres per month starting on Tuesday, a government spokesperson said, as it steps up efforts to tackle problems created by the war and crippling US economic sanctions.
Motorists can still buy up to 60 litres at 15,000 rials (about one pence) per litre and an additional 50 litres at 30,000 rials per litre.
But the price for amounts above that will be raised to 100,000 Iranian rials (about 5 pence) per litre, Fatemeh Mohajerani said in comments carried by state media.
The increase in Iran's gasoline price, which is one of the lowest in the world, was discussed by the government and postponed amid concerns it could trigger new protests.
Iran experienced widespread protests in 2019 over the same issue.
The higher fuel price will only affect consumers who require more than 110 litres per month and is due to "current conditions", Mohajerani said.
In December, Iran partially raised the price of its subsidised gasoline for most users, as the OPEC member sought to control rising fuel demand.
Pictures: Mass funeral in Gaza after 70 children among 110 killed
Bodies wrapped in white shrouds and draped with Palestinian flags were laid out for the mass funeral after 110 people were killed.
Some shrouds bore images of the deceased.
"We are witnessing a painful, heartbreaking scene," said Mustafa Quzghat, a relative.
Over 73,650 Palestinians have been killed since the war in Gaza began, according to Gaza's Health Ministry.
Strait of Hormuz shipping falls to lowest level since May
An average of just 10 commodity ships transited the Strait of Hormuz each day over the past 10 days, the lowest level since May, according to data from analytics firm Kpler.
It came as US forces struck three Iranian oil tankers on Saturday, US Central Command said, including one off the coast of Kharg Island, near Iran's key oil export hub.
The navy of Iran's Islamic Revolutionary Guard Corps said on Saturday it targeted three oil tankers that were travelling through unauthorised routes in the Strait of Hormuz as well as three additional US vessels in other areas.
However, Centcom denied that US vessels were struck by Iran.
Oil price rise after US and Iran strikes in Hormuz
Oil prices extended gains on Monday as tit-for-tat strikes between the US and Iran on vessels sailing through the Strait of Hormuz and elsewhere heightened concerns about a prolonged disruption to supplies from the Middle East.
Brent crude futures rose 79 cents, or 0.82 per cent, to $97.07 a barrel by 0512 GMT, while US West Texas Intermediate crude was at $92.28 a barrel, up 80 cents, or 0.87 per cent.
Brent rose 7.8 per cent last week while WTI gained nearly 10 per cent after the US and Iran resumed attacks and caused a reduction in oil flows through the Hormuz strait where a fifth of the world's oil supply used to transit.
Trump's son-in-law Kushner says Gaza has been a 'dystopian place'
Jared Kushner, president Donald Trump's son-in-law, defended the lack of progress in talks about next steps in the fragile Gaza ceasefire, saying that "it's been a dystopian place for a long time."
Speaking at a news conference in Ukraine, Kushner defended his work with Trump's special envoy, Steve Witkoff, saying the militarisation by the Hamas militant group in the Palestinian territory was "beyond our comprehension, so demilitarizing it is not going to be easy."
"But we're very determined, and we're working through these things," Kushner said.
He added: "We're working through some political issues in Israel. I think we agree with them on the end state. They just have a crazy election, and that makes them a little irrational in certain regards."
Israel's election is set for 27 October.
Drone strikes Iranian Kurdish opposition camp in Iraq, report says
A drone struck a refugee camp belonging to an Iranian Kurdish opposition group in Iraq’s Kurdistan Region early on Monday, according to Kurdish news outlet Rudaw.
The strike hit the camp in Sulaymaniyah at around 4.40am local time, reportedly causing material damage but no casualties.
Mass funeral in Gaza for over 110 Palestinians found in rubble
Dozens of Palestinians gathered in Gaza City to mourn over 110 people, including at least 70 children, after their remains were recovered.
Rescue crews have been digging out the bodies from the Zeitoun neighborhood.
They said the dead came from three families whose houses were flattened by Israeli strikes earlier in the war.
"We are witnessing a painful, heartbreaking scene," said Mustafa Quzghat, a relative.
The bodies were wrapped in white shrouds and draped with Palestinian flags. Some shrouds bore images of the deceased, according to Associated Press footage. They were laid out in rows on the ground.
Over 73,650 Palestinians have been killed since the war in Gaza began, according to Gaza's Health Ministry.
The ministry, part of the Hamas-run government, maintains detailed records viewed as generally reliable by UN agencies and international organisations. It doesn't give a breakdown of civilians and militants.
Iran official says Tehran to set up 'exclusion zone' outside strait
The new head of Iran's Supreme National Security Council said Tehran plans to announce an "exclusion zone" outside the Strait of Hormuz aimed at vessels it believes are attempting to transit the waterway.
Mohsen Rezaei's comments to Iran's state broadcaster came with few details, a day after the US struck three Iranian oil tankers in response to Tehran launching ballistic missiles at US warships.
Experts called the launches a dangerous escalation after Iran's previous attacks at sea targeted commercial shipping.
The new zone should be announced in the coming days and weeks and "will begin from the line of the US naval blockade, extend toward the Strait of Hormuz, and from this side continue into the Persian Gulf," Rezaei said.
Iran mocks US over Strait of Hormuz disruption with Simpsons meme
Iran has accused the US of causing disruption to shipping through the Strait of Hormuz and then attempting to blame Tehran for the fallout.
Foreign ministry spokesman Esmaeil Baghaei said Washington was trying to “put Iran’s name” on the consequences of a crisis it had created.
Baghaei also shared a Simpsons meme depicting Homer and Bart standing beside a spreading fire, with Bart saying: “Relax. It’s a controlled burn.”
“America started the war but expects the whole world to pay the bill, while portraying Iran as the one that caused this chaos”, he wrote on X.
AI outlook — possibilities, not facts
Iran to declare exclusion zone outside the Strait of Hormuz
Likely · Within days
Iran to raise gasoline prices for heavy users starting Tuesday
Very likely · Within days

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Iran and the US have exchanged strikes in the Strait of Hormuz region, with Iran announcing plans to establish an exclusion zone targeting vessels it deems unauthorized, while the US denies Iran's claim of hitting an uncrewed military vessel and reports striking three Iranian oil tankers. Concurrently, Israeli strikes killed seven in southern Lebanon, and over 110 Palestinians were mourned in Gaza after their remains were recovered from rubble.

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