Could Iran Start Charging Global Tech Firms For Undersea Cables In The Strait Of Hormuz?

Iranian news agencies affiliated with the Islamic Revolutionary Guards Corps (IRGC)—Tasnim and Fars—have proposed that Tehran impose fees on global tech firms operating undersea fiberoptic cables in the Strait of Hormuz. The move follows Iran’s weeks-long closure of the strategic waterway, which connects the Persian Gulf to the open sea, after U.S. and Israeli airstrikes on February 28. The proposals argue Iran has sovereignty over the seabed in the strait, citing UN Convention on the Law of the Sea (UNCLOS) Article 34, and claim that cable operators like Google, Meta, Microsoft, and Amazon are illegally occupying Iranian territory. Tasnim compared the potential revenue to Egypt’s earnings from Suez Canal cable transit, though experts note Iran lacks territorial control over most cable routes. If enforced, severing or disrupting these cables—critical for global internet traffic, cloud services, and financial transactions—would cause immediate outages across Asia, the Middle East, and Europe. Streaming, messaging, and online banking would fail, while rerouting traffic via satellites or alternative cables would degrade speeds significantly. Legal experts reject Iran’s stance, pointing to UNCLOS Article 79, which protects undersea cables as global infrastructure. NetBlocks director Isik Mater called Iran’s position tenuous, as Egypt’s licensing model relies on voluntary agreements, unlike Iran’s unilateral claims. The proposal also seeks to force tech giants to operate under Iranian law and partner with local firms, framing Hormuz control as a ‘digital power lever.’ While the plan is framed as a sovereignty assertion, analysts describe it as more of a threat than a viable strategy. Iran’s closure of the strait remains a major obstacle in ending the ongoing conflict, with Tehran rejecting international recognition of its transit rights.