Iran eyes a new source of power deep beneath the Strait of Hormuz
Iran is proposing to charge global tech firms for using subsea cables beneath the Strait of Hormuz, threatening disruptions if fees are unpaid, while state-linked media hints at potential sabotage. The move, tied to Iran’s wartime leverage, targets cables like Falcon and Gulf Bridge International (GBI) that traverse Iranian waters, raising concerns over global internet and financial traffic.
Iran is leveraging its control over the Strait of Hormuz to extract economic and strategic advantages, this time targeting subsea cables that carry critical internet and financial data between Europe, Asia, and the Persian Gulf. The Islamic Republic plans to impose licensing fees on companies like Google, Microsoft, Meta, and Amazon for using cables passing through Iranian waters, while also demanding exclusive repair and maintenance rights for Iranian firms. State-linked media and military spokesperson Ebrahim Zolfaghari have warned that traffic could be disrupted if companies refuse to comply. Two cables, Falcon and Gulf Bridge International (GBI), run through Iranian territorial waters, according to TeleGeography, though most cables cluster along Oman’s side of the strait to avoid Iranian jurisdiction. Iran’s threats follow its wartime blockade successes and come as tensions rise amid fears of renewed conflict, particularly with U.S. President Donald Trump’s return from China. The move underscores Iran’s broader strategy to demonstrate its leverage over the Strait of Hormuz, a vital global chokepoint for energy and digital traffic. Dina Esfandiary, Middle East lead at Bloomberg Economics, noted that Iran aims to impose costs on the global economy to deter future attacks. However, U.S. sanctions prevent tech companies from paying Iran directly, leaving unclear how Tehran would enforce compliance. Disrupting subsea cables could trigger a ‘cascading digital catastrophe,’ affecting banking, military communications, AI infrastructure, and everyday services like streaming and online gaming. Mostafa Ahmed, a researcher at the Habtoor Research Center, warned that attacks on submarine cables in the Gulf could have far-reaching consequences for global connectivity. Iran has not explicitly threatened sabotage but has repeatedly signaled its willingness to use the Strait of Hormuz as a tool for coercion. The plan reflects Tehran’s efforts to secure its regime’s survival by exploiting its geographic position, even beyond traditional military means.
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