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Iran asserts sovereign rights over Hormuz fiber-optic routes

Al Mayadeen | May 18, 2026

Tehran has signaled that, under Iran’s sovereign rights over its territorial seabed, the country could regulate optical fiber cables crossing the Strait of Hormuz through permits, oversight mechanisms, and transit fees, highlighting the strategic importance of the waterway in global communications and finance, Iran’s Fars News Agency has reported.

Iran could require sovereign permits, impose oversight measures, and levy fees on subsea communications infrastructure passing through the strategic waterway, as per the report.

The report underscores the growing geopolitical importance of undersea digital networks alongside the strait’s longstanding role in global energy transit.

Fiber-optic cables routed through the Strait of Hormuz facilitate more than $10tn in daily financial transactions worldwide, the news agency reported, citing a report by the UK-based Policy Exchange research center. The corridor reportedly serves as a critical link connecting Gulf states, Asia, and Europe through high-capacity telecommunications systems.

Iran’s subsea leverage

The agency further warned that any disruption involving protected dense wavelength division multiplexing (DWDM) cables in the strait could trigger substantial economic fallout, with losses potentially reaching tens or hundreds of millions of dollars per day through direct and indirect impacts on regional and global markets.

The report comes as Iran is reportedly looking to expand its control over the Strait of Hormuz by eyeing the vast network of subsea communication cables running beneath the vital waterway amid the US-Israeli ongoing threats.

Following a successful demonstration of leverage during recent US-Israeli aggression, Iranian officials and state-linked media are now focusing on underwater internet infrastructure that carries major volumes of global digital and financial traffic between Europe, Asia, and the Gulf.

Iranian authorities are discussing plans to impose charges on international companies using submarine internet cables that pass through the Strait of Hormuz. Iranian military spokesperson Ebrahim Zolfaghari stated on X last week, “We will impose fees on internet cables.”

Media outlets said the proposal could require major technology firms, including Google, Microsoft, Meta, and Amazon, to follow Iranian regulations regarding cable operations in the region. Reports also suggested submarine cable operators could face licensing fees, while maintenance and repair activities may be limited to Iranian companies.

Several of the companies referenced have financial interests tied to cable systems operating through the Gulf and the Strait of Hormuz. However, it remains uncertain whether those specific routes pass directly through Iranian territorial waters.

At the same time, Iranian media have hinted at the possibility of disruptions to subsea cable traffic, raising concerns about the vulnerability of infrastructure responsible for trillions of dollars in global data transmission and international internet connectivity.

Strait of Hormuz gains new strategic importance

Concerns over renewed US-Israeli aggression have intensified following US President Donald Trump’s return from China, with Tehran increasingly emphasizing the strategic tools it possesses beyond conventional military capabilities, CNN reported.

The latest rhetoric highlights the growing geopolitical significance of the Strait of Hormuz not only as a major energy corridor but also as a critical digital passageway. Iran appears intent on converting its geographic position into broader economic and strategic influence.

Subsea communication cables are essential to the modern global economy, carrying most international internet and data traffic. Any major disruption could affect banking operations, military communications, cloud computing systems, AI infrastructure, remote work networks, online gaming platforms, and streaming services worldwide.

Dina Esfandiary, Middle East lead at Bloomberg Economics, said Iran’s messaging is intended to showcase its leverage over the strategic waterway and protect the Islamic Republic from future aggressions.

“It aims to impose such a hefty cost on the global economy that no-one will dare attack Iran again,” she said.

Concerns over potential cable attacks

A number of key intercontinental subsea cables pass through the Strait of Hormuz. According to Mostafa Ahmed, a senior researcher at the UAE-based Habtoor Research Center, international operators have historically avoided Iranian waters because of long-standing security concerns. Instead, many cables are concentrated near the Omani side of the strait.

Still, Alan Mauldin, research director at telecom research company TeleGeography, noted that two systems, Falcon and Gulf Bridge International (GBI), cross Iranian territorial waters.

Although Iranian officials have not directly threatened to damage the cables, Tehran has repeatedly warned Washington’s regional allies that it possesses multiple ways to respond to pressure. Experts say this reflects a broader pattern of asymmetric tactics employed by the Islamic Republic.

Ahmed warned that Iran’s Islamic Revolution Guard Corps (IRGC), equipped with combat divers, mini-submarines, and underwater drones, could pose a threat to underwater communications infrastructure. He said a major strike on subsea systems could trigger a “digital catastrophe” affecting multiple regions simultaneously.

Global economic risks

Countries along the Gulf could experience severe internet disruptions in the event of cable damage, potentially affecting banking systems and critical oil and gas exports. Ahmed also noted that India could face significant interruptions to internet traffic, placing billions of dollars in outsourcing services at risk.

Because the Strait of Hormuz serves as a major digital corridor connecting Asian hubs such as Singapore with European cable landing stations, disruptions could also slow financial trading and international transactions between Europe and Asia. Some areas in East Africa could even experience internet outages.

Experts further warned that similar tactics in the Red Sea by the Yemeni Armed Forces could magnify the threat.

In 2024, three subsea cables were damaged after a vessel hit by Yemen’s resistance movement dragged its anchor across the seabed while sinking. According to Hong Kong-based HGC Global Communications, the incident disrupted nearly 25% of internet traffic in the surrounding region.

Despite these risks, TeleGeography said cables running through the Strait of Hormuz represented “less than 1% of global international bandwidth as of 2025.”

Undersea cable warfare has deep roots

The strategic importance of underwater communication lines dates back to the 19th century. The first transatlantic telegram was transmitted in 1858, carrying a 98-word message from Britain’s Queen Victoria to US President James Buchanan that took more than 16 hours to arrive.

Today, modern submarine fiber-optic cables can transmit enormous amounts of information at extraordinary speeds. According to the International Cable Protection Committee, a single optical fiber can carry data equivalent to around 150 million simultaneous phone calls.

The targeting of undersea communication infrastructure is also not new. During World War I, Britain cut Germany’s key telegraph cables in one of the conflict’s earliest moves, isolating German military communications.

While most modern cable failures cause limited disruption because traffic can be rerouted through alternative networks, experts caution that a large-scale attack today would carry far greater consequences due to the world’s heavy dependence on digital connectivity.

Repair operations could also become more difficult during ongoing regional instability. Maintenance vessels must remain stationary for long periods while fixing damaged cables, making them vulnerable in conflict zones. Mauldin said only one of the five repair ships usually operating in the region currently remains inside the Gulf.

Iran looks to the Suez Model

Iranian media outlets have defended the proposal to charge for subsea cables by citing international maritime law, particularly provisions within the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

Although Tehran signed but never formally ratified the convention, many legal experts regard parts of it as customary international law. Article 79 of UNCLOS allows coastal states to set conditions for cables and pipelines entering their territorial waters.

Iranian commentators have compared the initiative to Egypt’s management of the Suez Canal, which hosts numerous subsea cables connecting Europe and Asia and generates substantial annual revenue through transit and licensing fees.

“Of course, for existing cables, Iran has to abide by the contract that had been made when the cable was laid,” said Irini Papanicolopulu, a professor of international law at SOAS University of London. “But for new ones, any state, including Iran, can decide if and under what conditions, cables can be laid in its territorial sea.”

Esfandiary said Tehran may have previously understood its strategic leverage over the strait only in theory, but recent developments appear to have reinforced its confidence.

Now, she said, Iran “has discovered the impact.”

May 18, 2026 - Posted by aletho | Economics, Wars for Israel | Iran, Middle East, Saudi Arabia, United States