Iran has detained a foreign vessel carrying 2 million litres of smuggled fuel near its southern port city of Bushehr, Iran's Tasnim news agency reported on Sunday.

Iran, which has some of the world's cheapest fuel prices due to heavy subsidies and the plunge in the value of its national currency, has been fighting rampant fuel smuggling by land to neighbouring countries and by sea to Gulf Arab states.

(Reporting by Elwely Elwelly; Editing by Hugh Lawson)