Iran May Have Found a New Way to Threaten Trump’s Economy — And It’s Not Oil

Iran may be developing plans to exert control over critical undersea internet cables passing through the Strait of Hormuz, according to reports linked to the Iranian Revolutionary Guard. While the strait is known for handling 20% of global oil shipments, it also carries about 17% of the world’s internet traffic, with Gulf states relying 95-99% on these cables for connectivity. The proposals include requiring permits for cable repairs, charging transit fees, and demanding Iranian oversight of maintenance. Iran does not legally own the cables, which are operated by multinational consortiums, but could attempt to assert jurisdiction over nearby waters or use military pressure to enforce compliance. This development poses a significant risk to global digital infrastructure, as over $10 trillion in daily financial transactions depend on subsea cable connectivity. Tech giants like Microsoft, Alphabet (Google), and Amazon have invested billions in AI and cloud infrastructure across the Gulf, relying on uninterrupted cable links between Europe, Asia, and Africa. Disruptions in cable operations could delay repairs, increase costs, or even restrict access during conflicts, threatening the stability of AI-driven economies. The U.S. Treasury and SWIFT data highlight the financial vulnerability tied to these critical undersea routes, particularly for Middle East-Europe and Asia-Europe data flows. If Iran succeeds in enforcing its demands, it could reshape global internet governance and introduce new geopolitical risks to digital commerce. Investors and tech firms are now reassessing the potential fallout of such a move on financial markets and AI infrastructure.