Concerns are growing that Iran, which dealt a major blow to the global crude oil supply chain by blocking the Strait of Hormuz, is now trying to seize control of the undersea communications cables, the world economy's "hidden artery."
On the 17th (local time), CNN in the United States reported that as worries mount over the possibility of war resuming after U.S. President Donald Trump's visit to China, Iran is highlighting that it possesses powerful tools beyond military force, and that it is pushing a plan to impose usage fees on the submarine internet cables laid beneath the Strait of Hormuz.
In fact, Ebrahim Zolfaghari, Spokesperson for the Khatam al-Anbiya Central Headquarters, which commands Iran's armed forces, said on X (formerly Twitter) last week, "We will impose fees on the internet cables (in the Strait of Hormuz)."
State-affiliated media linked to the Iranian government are also continuing related reports. The hard-line Fars News Agency argued on the 9th that Iran can exercise sovereign jurisdiction and regulatory authority, as well as the right to collect usage fees, over the submarine cables that connect Europe, the Middle East, and Asia. Other outlets are likewise warning that if corporations do not pay the fees, problems could arise in internet traffic.
Iran appears poised to demand fee payments from U.S. big tech corporations such as Google, Microsoft, Meta, and Amazon. State media linked to the Islamic Revolutionary Guard Corps (IRGC) reported that the Iranian government will demand that U.S. big tech corporations comply with Iranian law.
Along with this, Iran is also pushing measures to levy transit fees through the Strait of Hormuz on submarine cable operators and to grant exclusive future rights for cable repairs and maintenance to Iranian corporations.
Major intercontinental submarine cables that connect Europe, Asia, and the Persian Gulf are laid on the seabed of the Strait of Hormuz. If Iran actually moves to control the submarine cables, the damage could extend far beyond simple internet slowdowns to the global digital infrastructure as a whole, including banking systems, military communications, AI cloud infrastructure, remote work, online gaming, and streaming services.
Because of Iran's long-standing security risks, many submarine cable operators have deliberately avoided Iranian territorial waters and concentrated cables in the narrow waters near Oman. However, some cables still pass through Iranian waters. In particular, analysts note that the IRGC possesses small submersibles and underwater drones, enabling it to threaten submarine cables across the entire strait.
Alan Mauldin, research director at the submarine cable research firm TeleGeography, warned that if Iran launches an actual attack, a "cascading digital catastrophe" spanning multiple continents could be triggered. He said the Strait of Hormuz is a key digital corridor linking Asian data hubs like Singapore with Europe's cable landing points, and explained that if cable control becomes a reality, the speed of financial transactions and international remittances between Europe and Asia could slow significantly.
Middle Eastern countries also face potential blows to financial systems tied to oil and gas exports. Analysts say India could suffer losses worth billions of dollars in its outsourcing industry as a significant share of its internet traffic is affected. Some parts of East Africa may even experience an internet "blackout."
A bigger concern is that armed groups supported by Iran could carry out similar submarine cable attacks in other waters. According to Hong Kong telecom company HGC Global Communications, in 2024, three Red Sea submarine cables were severed when a ship attacked by Yemen's pro-Iran Houthi rebels sank, paralyzing about 25% of the region's internet traffic at the time.
Dina Esfandiary, Middle East director at Bloomberg Economics, analyzed that such threats are part of a strategy to flaunt influence over the Strait of Hormuz and ensure regime survival. She said, "Iran is trying to prevent anyone from ever attacking Iran again by imposing massive costs on the global economy."
However, it is unclear whether Iran's plan will actually prove effective in negotiations with the United States. Because of Washington's strong sanctions on Iran, it is effectively prohibited for corporations to pay expenses to Iran. Analysts also say Iran has limited realistic means to force U.S. tech companies to pay submarine cable usage fees. Moreover, as of last year, cables transiting the Strait of Hormuz accounted for less than 1% of the world's international bandwidth.