New Controversy Over Undersea Cables

Iran, which recently stirred global markets with oil-related tensions around the Strait of Hormuz, now appears to be preparing another major move that could impact worldwide digital connectivity. According to reports in Iranian state-affiliated media, Tehran is considering imposing fees on undersea internet cables passing through the Strait of Hormuz. The proposal reportedly targets major global tech companies such as Google, Microsoft, Meta, and Amazon, requiring them to comply with Iranian regulations and pay licensing charges through submarine cable operators. The plan may also mandate that maintenance and repair rights of these cables be handed over to Iranian firms. While details on the fee structure remain unclear, warnings suggest that companies refusing to comply could face disruptions in data traffic.

This development has raised serious concerns globally, as submarine cables are the backbone of international internet and data transmission. Any disruption could slow internet speeds and impact banking systems, military communications, artificial intelligence operations, and cross-border transactions. A significant portion of global data traffic, including connections linking Asian hubs like Singapore to Europe, and much of India’s internet flow, passes through this region. Although Iran has cited provisions under the 1982 United Nations Convention on the Law of the Sea (UNCLOS), it has signed but not ratified the treaty. Experts note that the Strait of Hormuz differs from the Suez Canal, where Egypt legitimately collects fees, as Hormuz is a natural waterway and not entirely under Iran’s territorial control. The global response from tech giants remains to be seen.