Why Iran wants to charge world’s largest tech companies for using Strait of Hormuz undersea cables
Iran has threatened to impose tariffs on Strait of Hormuz submarine cables, which are crucial for the region’s digital economy.
After a sustained blockade of the Strait of Hormuz and leaving the world scrambling for oil and energy supplies, Iran’s Islamic Revolutionary Guard Corps (IRGC) demanded “protection fees” from foreign cable operators to provide them with permits to maintain seabed infrastructure.
The narrow waterway, already a chokepoint for global oil shipments, is equally vital for the digital world. Several fibre-optic cables snake across the seabed of the strait, connecting countries from India and Southeast Asia to Europe via the Gulf states and Egypt.
The state-affiliated media warned that damage to the cables could impact trillions of dollars in global data transmission and affect world connectivity, even as some experts say Iran is overestimating its influence in a bid to gain leverage against future attacks.
“We will impose fees on internet cables,” declared Iranian military spokesperson Ebrahim Zolfaghari on X. The threat has raised concerns about potential attacks on critical infrastructure.
Tehran’s plan to levy fees on major global technology firms, including Microsoft, Meta, Google and Amazon, has triggered concerns. The Independent has reached out to the four tech giants for comments.
While it is unclear how the tech firms could be forced to comply with the demand due to the strict US sanctions barring companies from making payments to Iran, the latest ask comes with an underlying threat that the traffic could be disrupted if the firms don’t pay.
Subsea cables are fibre-optic or electrical cables laid on the sea floor to transmit data and power. They carry around 99 per cent of the world’s internet traffic, according to the International Telecommunication Union (ITU), the United Nations specialised agency for digital technologies. They also carry telecommunications and electricity between countries, and are essential for cloud services and online communications.
Major cables through the Strait of Hormuz include the Asia-Africa-Europe 1, connecting Southeast Asia to Europe via Egypt, with landing points in the UAE, Oman, Qatar, and Saudi Arabia; the Falcon network, connecting India and Sri Lanka to Gulf countries, Sudan, and Egypt; and the Gulf Bridge International Cable System, linking all Gulf countries including Iran.
Of these, two cables – Falcon and Gulf Bridge International – run through Iranian territorial waters.
According to Windward AI, the Iranian threat has prompted Alcatel Submarine Networks – a French company leading in the installation of submarine cables – to issue force majeure notices covering Gulf operations.
The notice means that the involved players would be excused from fulfilling the obligation of laying down or maintaining submarine cables and equipment.
While a cable cut during peacetime is an inconvenience, and takes under three weeks to repair and restore traffic, during a period of conflict, a damaged cable may lead to severe disruption.
The intentional sabotage of cables in the Gulf would not just damage infrastructure but also pull civilian crew into active conflict zone.
