Iran Threatens Fees on Hormuz Strait Submarine Cables; Internet Disruption Risk Emerges as New Strategic Tool
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- 📰 Published: May 17, 2026 at 19:05
- 🔍 Collected: May 17, 2026 at 19:31 (26 min after Published)
- 🤖 AI Analyzed: May 17, 2026 at 19:38 (6 min after Collected)
(Comprehensive foreign report from Tehran, 17th) After successfully blockading the Strait of Hormuz during wartime, Iran is now turning its attention to the invisible lifeline of the global economy: submarine cables. Tehran plans to charge fees for cables laid in the strait and has hinted at possibly interfering with data transmission, putting parts of Eurasia and the Middle East at risk of internet outages.
CNN reports that the submarine cables in the Strait of Hormuz are responsible for transmitting a massive amount of internet and financial transaction data between Europe, Asia, and the Persian Gulf, and Iran hopes to collect related user fees from several of the world's largest tech companies.
Iranian government-affiliated media have vaguely threatened that data transmission on the cables could be disrupted if companies refuse to pay. Last week, Iranian parliamentarians also discussed a plan to consider measures against cables connecting Arab countries with Eurasia.
Iranian military spokesman Ebrahim Zolfaghari announced last week on the social media platform X: "We will charge for the internet cables."
Media associated with Iran's Islamic Revolutionary Guard Corps (IRGC) reported that Tehran's plan to profit from the Strait of Hormuz would require companies like Google, Microsoft, Meta, and Amazon to comply with relevant laws. Submarine cable operators would have to pay licensing fees for cable passage, and the rights for repair and maintenance would be exclusively held by Iranian companies.
Some of the aforementioned companies have indeed invested in submarine cables crossing the Strait of Hormuz and the Persian Gulf, but it is currently uncertain if any pass through Iranian waters.
At the same time, it is unclear how Iranian authorities intend to force tech giants to comply, as U.S. sanctions already prohibit companies from making payments to Iran.
As U.S. President Donald Trump returns from his visit to China, there are growing concerns that a U.S.-Iran war could erupt again. Iran is increasingly emphasizing that, besides military power, Tehran holds other powerful tools of pressure.
This move highlights that the Strait of Hormuz not only has value for energy exports, but Iran is also trying to convert its geographical advantage into long-term economic and strategic power.
Submarine cables are the foundation of global connectivity, carrying the vast majority of the world's internet and data transmissions. If a cable is damaged, the impact goes far beyond connection speeds; it could threaten banking systems, military communications, artificial intelligence (AI) cloud infrastructure, remote work, online gaming, and streaming services.
Dina Esfandiary, head of the Middle East region at Bloomberg Economics, pointed out: "Iran's goal is to impose a huge cost on the global economy so that no one dares to attack Iran again."
Several large intercontinental submarine cables do pass through the Strait of Hormuz. However, Mostafa Ahmed, a senior researcher at the Habtoor Research Center in the United Arab Emirates, stated that due to Iran's long-standing security risks, international operators have deliberately avoided Iranian waters, causing most cables to be concentrated in a narrow strip on the Omani side of the strait.
Nevertheless, Alan Mauldin, research director at the telecommunications market research firm TeleGeography, said that two cables, "Falcon" and "Gulf Bridge International," pass through Iranian territorial waters.
Iran has never explicitly stated it would destroy the cables, but its officials, parliamentarians, and state-affiliated media have repeatedly expressed their intention to punish Washington's regional allies. This appears to be a new type of asymmetric warfare strategy developed by Iran to attack its neighbors.
Ahmed stated that the IRGC has combat divers, small submarines, and underwater drones that pose a threat to submarine cables. An attack on the cables could trigger a cross-continental, domino-effect "digital disaster."
Iran's Persian Gulf neighbors could face severe disruptions to their internet connectivity, impacting key industries such as oil and gas exports and banking. Ahmed added that a large portion of India's internet traffic could also be affected, threatening the country's massive outsourcing industry with potential losses in the billions of dollars.
Ahmed noted that the Strait of Hormuz is a critical digital corridor between Asian data hubs like Singapore and some European cable landing stations. Any disruption could slow down financial and cross-border transactions in Eurasia, and parts of East Africa could also face widespread internet outages.
Although damage to the cables could severely impact the Middle East and some Asian countries, TeleGeography stated: "By 2025, the submarine cables crossing the Strait of Hormuz will account for less than 1% of the world's international bandwidth." (Compiled by Hong Pei-ying) 1150517
CNN reports that the submarine cables in the Strait of Hormuz are responsible for transmitting a massive amount of internet and financial transaction data between Europe, Asia, and the Persian Gulf, and Iran hopes to collect related user fees from several of the world's largest tech companies.
Iranian government-affiliated media have vaguely threatened that data transmission on the cables could be disrupted if companies refuse to pay. Last week, Iranian parliamentarians also discussed a plan to consider measures against cables connecting Arab countries with Eurasia.
Iranian military spokesman Ebrahim Zolfaghari announced last week on the social media platform X: "We will charge for the internet cables."
Media associated with Iran's Islamic Revolutionary Guard Corps (IRGC) reported that Tehran's plan to profit from the Strait of Hormuz would require companies like Google, Microsoft, Meta, and Amazon to comply with relevant laws. Submarine cable operators would have to pay licensing fees for cable passage, and the rights for repair and maintenance would be exclusively held by Iranian companies.
Some of the aforementioned companies have indeed invested in submarine cables crossing the Strait of Hormuz and the Persian Gulf, but it is currently uncertain if any pass through Iranian waters.
At the same time, it is unclear how Iranian authorities intend to force tech giants to comply, as U.S. sanctions already prohibit companies from making payments to Iran.
As U.S. President Donald Trump returns from his visit to China, there are growing concerns that a U.S.-Iran war could erupt again. Iran is increasingly emphasizing that, besides military power, Tehran holds other powerful tools of pressure.
This move highlights that the Strait of Hormuz not only has value for energy exports, but Iran is also trying to convert its geographical advantage into long-term economic and strategic power.
Submarine cables are the foundation of global connectivity, carrying the vast majority of the world's internet and data transmissions. If a cable is damaged, the impact goes far beyond connection speeds; it could threaten banking systems, military communications, artificial intelligence (AI) cloud infrastructure, remote work, online gaming, and streaming services.
Dina Esfandiary, head of the Middle East region at Bloomberg Economics, pointed out: "Iran's goal is to impose a huge cost on the global economy so that no one dares to attack Iran again."
Several large intercontinental submarine cables do pass through the Strait of Hormuz. However, Mostafa Ahmed, a senior researcher at the Habtoor Research Center in the United Arab Emirates, stated that due to Iran's long-standing security risks, international operators have deliberately avoided Iranian waters, causing most cables to be concentrated in a narrow strip on the Omani side of the strait.
Nevertheless, Alan Mauldin, research director at the telecommunications market research firm TeleGeography, said that two cables, "Falcon" and "Gulf Bridge International," pass through Iranian territorial waters.
Iran has never explicitly stated it would destroy the cables, but its officials, parliamentarians, and state-affiliated media have repeatedly expressed their intention to punish Washington's regional allies. This appears to be a new type of asymmetric warfare strategy developed by Iran to attack its neighbors.
Ahmed stated that the IRGC has combat divers, small submarines, and underwater drones that pose a threat to submarine cables. An attack on the cables could trigger a cross-continental, domino-effect "digital disaster."
Iran's Persian Gulf neighbors could face severe disruptions to their internet connectivity, impacting key industries such as oil and gas exports and banking. Ahmed added that a large portion of India's internet traffic could also be affected, threatening the country's massive outsourcing industry with potential losses in the billions of dollars.
Ahmed noted that the Strait of Hormuz is a critical digital corridor between Asian data hubs like Singapore and some European cable landing stations. Any disruption could slow down financial and cross-border transactions in Eurasia, and parts of East Africa could also face widespread internet outages.
Although damage to the cables could severely impact the Middle East and some Asian countries, TeleGeography stated: "By 2025, the submarine cables crossing the Strait of Hormuz will account for less than 1% of the world's international bandwidth." (Compiled by Hong Pei-ying) 1150517