IN BRIEF
- Iran has warned the US that further attacks will be met with a "more intense and more painful response".
- The Iranian government will increase the price of gasoline in an attempt to combat the economic impacts of the war.
Iran has warned that the "era of proportionate responses has come to an end" as it hits back against US strikes in the Strait of Hormuz.
After an exchange of fire which saw US warships and Iranian tankers targeted in the Strait, Iranian negotiator Mohammad Baqer Qalibaf warned the US that Iran will retaliate aggressively to further attacks.
He told state media that "any aggression against Iran's interests and security will receive a faster, more intense and more painful response".
"The Americans must have understood that the era of proportionate responses has come to an end."
Iran targeted a US naval drone, aircraft carrier and destroyer, and three oil tankers in the Strait — while the US Central Command said it "disabled" two Iranian oil tankers and "completely destroyed" a tanker in the Sea of Oman.
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Iran's Secretary of the Supreme National Security Council, Mohsen Rezaei, told state media on Sunday that a "prohibited zone" will be established near the Strait of Hormuz in "the coming days".
"This zone will start from the US Navy's blockade line and include areas of the Persian Gulf," he said.
He warned any ship entering the zone will be placed on Iran's "sanctions list".
Iran combats 'economic asphyxiation'
Iran has held control of the Strait since the conflict began in late February.
The US launched a counter-blockade on Iranian ports, a strategy it labelled "economic asphyxiation" in August.
Revolutionary Guard spokesperson Hossein Mohebi said Iran will target the US economy in response.
"If America wants to inflict one dollar of economic damage on Iran, it inflicts tens of dollars of damage on itself."
In a bid to counter US economic sanctions, Iran has announced plans to increase gasoline prices for users surpassing 110 litres per month starting Tuesday.
Iranian government spokesperson Fatemeh Mohajerani said the price of the first and second quotas, which include 110 litres, will remain unchanged, but the third quota will be raised to 100,000 Iranian rials per litre — about 4 US cents ($0.05) based on the free-market rate.
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.
Other motorists can still buy up to 60 litres at 15,000 rials per litre and an additional 50 litres at 30,000 rials per litre, she added.
In December, Iran partially raised the price of its subsidised gasoline for most users, as the OPEC member sought to control rising fuel demand.
—with additional reporting from Reuters
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