While many view the Strait of Hormuz primarily as a critical oil transit route, Iran is now emphasizing its significance as a digital corridor. Following its recent wartime blockade of the strait, Tehran is focusing on the subsea cables that lie beneath the water. These cables are not merely for internet use; they facilitate financial transactions, military communications, artificial intelligence data, and everyday information exchanges connecting Europe, Asia, and the Persian Gulf. Iran is seeking to assert its influence over these vital connections.
Iran's Bold Claims on Internet Cables
Last week, Iranian military spokesperson Ebrahim Zolfaghari made a clear statement on social media, indicating that Iran intends to impose fees on internet cables. State media associated with Iran's Revolutionary Guards elaborated on this, identifying major tech companies like Google, Microsoft, Meta, and Amazon as entities that would need to adhere to Iranian regulations. The proposed plan suggests that submarine cable operators would be obligated to pay licensing fees for their cables to pass through the strait, with repair and maintenance rights exclusively granted to Iranian companies.
The Importance of Subsea Cables
Submarine cables form the backbone of the global internet infrastructure. They carry the vast majority of data traffic, financial transactions, streaming services, banking operations, and international communications. Several significant intercontinental cables traverse the Strait of Hormuz. Due to security concerns, operators have generally avoided Iranian waters, opting to route most cables along the Omani side of the strait. However, two cables, Falcon and Gulf Bridge International, do pass through Iranian territorial waters, as noted by TeleGeography's research director Alan Mauldin.
Potential Consequences of Iranian Actions
Mostafa Ahmed, a senior researcher at the Habtoor Research Center in the UAE, has analyzed the implications of such threats. He points out that Iran's Revolutionary Guard Corps possesses combat divers, small submarines, and underwater drones that could target these cables. An attack could trigger a widespread "digital catastrophe" affecting multiple continents. Countries in the Persian Gulf might experience significant internet disruptions impacting oil, gas, and banking sectors. The strait serves as a crucial link between Asian data centers and European cable landing stations, meaning any disruption could hinder financial trading and cross-border transactions. Parts of East Africa could even face complete internet outages.
Historical Precedents
This scenario is not without precedent. In 2024, three submarine cables in the Red Sea were damaged when a vessel, struck by Iran-aligned Houthi militants in Yemen, dragged its anchor across the seabed. This incident alone disrupted nearly 25% of the region's internet traffic, according to HGC Global Communications. If Iran's proxies were to replicate such actions in the Red Sea alongside any operations in Hormuz, the cumulative damage could be significantly greater.
Iran's Motivations Behind the Threat
As concerns rise about the potential collapse of the US-Iran ceasefire following Trump's return from China, Tehran seems to be signaling that it has more leverage than just military might. The threat to subsea cables is part of a broader strategy to convert geographic control of the strait into enduring economic and political power, indicating that any escalation of conflict would have repercussions felt far beyond the battlefield.
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