Tehran aims to monetize access to undersea cables in the Strait of Hormuz, raising global connectivity concerns
Category: Technology
In a bold move to exert economic influence, Iran is preparing to impose fees on the world's largest technology companies for the use of subsea internet cables that run beneath the strategically important Strait of Hormuz. This initiative follows Iran's successful wartime blockade of the strait and reflects the Islamic Republic's intention to leverage its geographical position as a tool of economic and political pressure.
According to reports from Iranian state-linked media, the plan was discussed by lawmakers in Tehran last week and could target submarine cables that link Arab countries to Europe and Asia. Iranian military spokesperson Ebrahim Zolfaghari declared on social media platform X, "We will impose fees on internet cables." This statement signals a potential shift in how Iran manages its underwater infrastructure, which is integral to global internet and financial traffic.
The Iranian government has announced plans to develop a formal mechanism to regulate and charge for maritime traffic through the Strait of Hormuz. Ebrahim Azizi, head of Iran’s parliamentary national security committee, stated on May 16, 2026, that a "professional mechanism" is being prepared to manage this traffic. The framework will restrict access to vessels aligned with Iranian interests, denying passage to those linked to the U.S. "Project Freedom" initiative, which aims to secure commercial shipping routes in the region.
Subsea internet cables are the backbone of global connectivity, carrying over 95% of international data traffic. The cables in question are not just conduits for internet data but also support banking systems, military communications, and cloud infrastructure. If Iran proceeds with its threats to disrupt these cables, the consequences could extend far beyond internet speed, potentially destabilizing economies across continents.
Experts have pointed out that two key cables, Falcon and Gulf Bridge International, do run through Iranian territorial waters, which could give Iran leverage over companies like Google, Microsoft, Meta, and Amazon. These companies would be required to comply with Iranian laws and pay licensing fees for cable passage, with repair and maintenance rights granted exclusively to Iranian firms. The implications of this are vast, as any disruption could affect trillions of dollars in global data transmission.
The potential for cable disruption highlights a growing vulnerability in the global internet infrastructure. Mostafa Ahmed, a senior researcher at the United Arab Emirates-based Habtoor Research Center, warned that any attack on these cables could trigger a "cascading digital catastrophe" affecting multiple continents. This concern is amplified by the fact that many cables are bundled together along narrow seabed routes, creating single points of failure that could degrade connectivity across regions.
Iran's strategy appears to be an asymmetric warfare technique aimed at demonstrating its power over the Strait of Hormuz. The region is already witnessing heightened tensions, and the threat to subsea cables adds another layer of complexity to the geopolitical situation. As the war escalates, Iran seems to be signaling that it has tools at its disposal beyond traditional military force.
As discussions continue, the international community is closely monitoring Iran's next moves. U.S. sanctions complicate the situation, as they prohibit American companies from making payments to Iran, leading some analysts to view Tehran's statements as posturing rather than actionable policies. Nevertheless, the warnings from Iranian media about potential cable damage indicate a serious commitment to this new strategy.
In the past, similar incidents have had severe repercussions. For example, in 2024, a vessel struck by Yemen’s Iran-aligned Houthi militants severed three submarine cables, disrupting nearly 25% of internet traffic in the region. Such incidents highlight the fragility of the global internet infrastructure and the potential for geopolitical conflicts to escalate into digital crises.
Iran's move also draws comparisons to Egypt’s monetization of the Suez Canal, which generates hundreds of millions in transit fees. Legal experts, though, note that the two waterways operate under different international legal frameworks, complicating Iran's claims to similar rights over the Strait of Hormuz.
It is important to note that, as of 2025, cables traversing the Strait of Hormuz account for less than 1% of global international bandwidth, according to telecommunications research firm TeleGeography. This statistic raises questions about the actual impact of Iran's threats on global internet connectivity. Still, the symbolic significance of these threats cannot be overlooked, as they represent a shift in how Iran seeks to exert influence.
As tensions remain high, the international community will follow closely closely for any developments related to Iran's plans. The proposed framework for charging tech companies and regulating maritime traffic could be unveiled soon, and its implementation will be a key factor in determining the future of internet connectivity in the region. The situation is fluid, and the potential for escalation remains a pressing concern for both regional and global stakeholders.
With the backdrop of stalled negotiations with the U.S. and increased military tensions, Iran's approach to subsea cables could redefine its role in global geopolitics. As experts warn, the internet is more vulnerable than ever, and the implications of Iran's actions could resonate well beyond the Strait of Hormuz.