Iran Raises Stakes with Gulf Exclusion Zone and Missile Warning

Iran threatened the United States with "economic warfare" on Tuesday and said it had fired an advanced missile at U.S. warships, underscoring the risks of further escalation in the war only days after both sides traded blows again.

The six-month-old war has been marked by a cycle of pauses followed by periodic flare-ups, with the U.S. last reporting attacks on Iranian targets on Saturday, when U.S. forces struck three Iranian oil tankers. Iranian state media on Sunday reported that Iran fired the Qassem Basir missile.

Despite U.S. attempts to open up the Strait of Hormuz, Iran has continued to disrupt shipping through the critical artery for global oil and gas supplies, and there is no sign of progress towards a diplomatic breakthrough that could end the war which began with U.S. and Israeli strikes on Feb. 28.

The Islamic Republic has vowed to announce a new restricted zone in the Gulf in the coming days, along with maps of a new shipping corridor through the Strait of Hormuz, though it was unclear when details would emerge.

'Maritime Exclusion Zone'

The new restricted zone would begin from where the U.S. blockade of Iran begins and extend into