A Panama-flagged tanker carrying 2 million barrels of Iraqi fuel oil was struck by a drone in Iraqi territorial waters on Wednesday, two port officials said.

Iraqi rescue boats extinguished a fire aboard the tanker, New Andros, and there were no reports of casualties, port officials told Reuters.

Iran's Islamic Revolutionary Guard Corps (IRGC) said on Wednesday that a maritime restricted area would extend from Chabahar in Iran into parts of the Gulf of Oman and the Arabian Sea, with its precise coordinates to be announced.

The announcement follows comments on Sunday by Mohsen Rezaei, secretary of Iran's Supreme National Security Council, who was quoted by state media as saying Iran would establish a restricted zone outside the Strait of Hormuz in the coming days.

This is a developing story.