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TEHERAN – Iran has announced plans to impose licensing fees on submarine internet cables crossing the Strait of Hormuz, a move that could reshape the economics of global digital infrastructure while heightening geopolitical tensions in one of the world’s most strategic waterways.
Iran’s Revolutionary Guard revealed that the country intends to charge international technology companies among them Google, Microsoft, Meta, and Amazon for the use and maintenance of undersea internet cables running through the Strait of Hormuz.
Officials stated that only Iran would be authorized to repair and maintain these cables, effectively asserting sovereign control over a critical chokepoint for global connectivity.
The Strait of Hormuz already serves as a vital artery for global oil shipments.
Extending control to digital infrastructure signals Tehran’s ambition to leverage geography not only in energy markets but also in the digital economy.
Strategic and Economic Implications
Analysts warn that the policy could disrupt telecommunications across the Gulf region.
Research firm TeleGeography noted that while Europe and Asia rely heavily on routes through the Red Sea, Gulf states remain dependent on Hormuz-linked cables. Any disruption or fee imposition could raise costs for financial hubs such as Dubai and Doha.
Iranian state media suggested that companies refusing to comply might face sabotage or damage to their cables, raising concerns about operational risks and service interruptions.
The threat underscores the vulnerability of global internet infrastructure to geopolitical disputes.
Industry Response and Alternatives
Global technology firms have yet to issue formal statements, but industry experts highlight the uncertainty surrounding enforcement.
Questions remain about how Iran would collect fees and whether international law supports such claims.
Some companies may consider rerouting traffic through the Red Sea, though that corridor has also faced disruptions, including cable damage linked to conflicts involving Houthi rebels.
The dual vulnerability of both Hormuz and the Red Sea illustrates the fragility of global digital trade routes.
Iran’s move reflects a broader trend in which geopolitical conflicts increasingly extend into digital infrastructure.
Just as oil tankers passing through Hormuz symbolize global energy dependence, submarine cables represent the arteries of the digital economy.
For Gulf states, higher connectivity costs could ripple into financial markets, logistics, and trade.
For global investors, the announcement adds a layer of uncertainty to the operations of major U.S. technology firms, potentially influencing stock valuations and investment strategies.
By seeking licensing fees on submarine cables, Iran is attempting to monetize its control over one of the world’s most strategic waterways.
The policy could strain relations with U.S. tech giants, complicate internet traffic management, and expose Gulf economies to new risks.
While Europe and Asia may avoid direct impact, the Gulf region stands at the frontline of this emerging digital chokepoint where the intersection of geopolitics and technology is becoming increasingly unavoidable.
