Iran Warns US Of ‘Economic Warfare’ As Houthis Attack Saudi Arabia, 73 Wounded

Iran has threatened the United States with “economic warfare” and a new maritime exclusion zone across the Persian Gulf, while Tehran says it has fired an advanced missile at US warships. The threats came as Iran-backed Houthi forces attacked several cities in Saudi Arabia, injuring 73 people, according to a spokesperson for the Saudi-led coalition in Yemen.

The developments underline the risk of the six-month-old war spreading across the region as diplomatic progress stalls. According to Reuters, the latest escalation follows renewed US-Iran clashes, including US strikes on three Iranian oil tankers on Saturday and Iran’s reported use of the Qassem Basir missile against several US vessels.

Iran Warns Of Maritime Exclusion Zone

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said on Sunday that Tehran would establish a new restricted zone in the Gulf.

The zone would begin where the US blockade of Iran starts and extend into areas of the Gulf, Rezaei said on state television. Any vessel entering the area would be placed on an Iranian sanctions list.

Iran has also vowed to announce details of the restricted zone in the coming days, along with maps showing a new shipping corridor through the Strait of Hormuz. It was unclear when those details would emerge.

Rezaei renewed the economic and military threats on Tuesday in a post on X.

"In recent days, Washington has received a clear warning from Iran’s new missiles. ​Economic warfare will be met by a maritime exclusion zone across the Persian Gulf to the blockade perimeter. The operational posture toward U.S. warships and bases has been fundamentally ​recalibrated," Rezaei said.

Reuters reported that Rezaei was likely referring to the Qassem Basir ballistic missile, which Iranian media said had been fired at US warships near the Strait of Hormuz. The US military said its warships evaded any missile attacks.

Qassem Basir Missile

Iran has touted the Qassem Basir as an upgraded missile with improved manoeuvrability that can evade missile defence systems. It also has a guidance system that Iran says remains effective against electronic warfare.

The Fars news agency reported that its first combat use came in June 2025 against Israel. Iranian state media reported on Sunday that Iran had used the missile during attacks on several US vessels.

The war has been characterised by a cycle of pauses followed by periodic flare-ups. The United States last reported attacks on Iranian targets on Saturday, when US forces struck three Iranian oil tankers.

Despite major US barrages that have degraded Iran’s conventional forces and put further pressure on its already ailing economy, Tehran has retained missile and drone capabilities. These capabilities allow Iran to threaten oil tankers travelling through the Strait of Hormuz without its permission and attack Gulf neighbours that host US military bases.

Houthi Attacks In Saudi Arabia

Iran-backed Houthi forces attacked several cities in Saudi Arabia, wounding 73 people, a spokesperson for the Saudi-led coalition in Yemen said on Tuesday.

The attacks add to concerns that the conflict could spread into a wider regional war as diplomatic progress stalls.

Iran has also continued to disrupt shipping through the Strait of Hormuz despite US attempts to open the critical artery for global oil and gas supplies. Commodity vessel traffic has slowed again this week, Reuters reported.

Before the war, about one-fifth of global oil and liquefied natural gas shipments passed through the Strait of Hormuz. The waterway has allowed Iran to threaten tankers from Gulf neighbours seeking to export oil and gas.

Pressure On Iran And The Strait

Some analysts have suggested that Iran’s leverage over the Strait of Hormuz may be declining, while harsh new US economic sanctions are becoming increasingly difficult for Tehran to withstand.

Disruption around the strait has pushed up energy prices at a time when the war, which opinion polls show is unpopular in the United States, has increased risks for President Donald Trump’s Republican Party ahead of November’s congressional elections.

Trump has said oil prices would fall sharply if the United States wins the war.

"Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon. It will all happen quickly, and Iran will never have a Nuclear Weapon," Trump said on social media.

Trump’s War Aims

Trump has yet to achieve the aims he set out when he launched "Operation ⁠Epic Fury" in February. These included ending Iran’s nuclear programme, halting its ability to attack its neighbours and creating conditions for Iranians to topple their leadership.

Tehran’s clerical rulers remain in power and aim to emerge from the war stronger than before.

Iran continues to demand sanctions relief and hopes eventually to collect fees from ships using the Strait of Hormuz.