Aletho News

Iran’s Plan to Shut Down AI in the Persian Gulf

GCC internet will go dark if Trump renews hostilities

By Kurt Nimmo | Another Day in the Empire | September 18, 2026

The Gulf Cooperation Council (GCC) countries—Saudi Arabia, UAE, Qatar, Bahrain, and Kuwait—are heavily invested in AI as part of a strategy to diversify away from petroleum. National AI strategies across GCC countries emphasize investment in research and development, encourage public-private partnerships, and create regulatory frameworks that support innovation. The GCC AI market size increased from USD $6.22 billion in 2025 to USD $7.60 billion in 2026. It is projected to reach USD $23.03 billion by 2034.

In April, Iran’s Tasnim news agency mentioned the submarine cables, landing stations, and data hubs in the Gulf as strategic pressure points in the conflict initiated by the United States and Israel. According to the market research company IMARC Group, subsea internet data cables in the Gulf sit at the intersection of Europe, Asia, and Africa, and damage to these networks risks connectivity losses in one of the world’s most important internet traffic zones.

The economic importance of these cable systems extends far outside internet browsing or streaming services, notes Techstory, “because financial markets, payment systems and cloud computing firms depend on uninterrupted connections between continents every second of the day. Data centers in the Gulf and Asia also depend on those same cables to connect cloud systems serving businesses around the world.” Analysts estimate that networks linked to the GCC support roughly $10 trillion worth of financial transactions daily.

Iran claims the cables are within its territorial waters and fall under its jurisdiction. Tasnim and Fars suggest Iran may charge tech companies to use the internet cables, while Ebrahim Zolfaghari, a Brigadier General and the spokesperson for Iran’s Khatam al-Anbiya Central Headquarters, said that “companies like Google, Microsoft, Meta, and Amazon” will be required to “comply with Iranian law” and pay licensing fees for cable passage, with repair and maintenance rights given exclusively to Iranian firms.

The Islamic Republic cited the 1982 United Nations Convention on the Law of the Sea (UNCLOS), which includes provisions governing submarine cables. Article 79 of UNCLOS says coastal states have the right to establish conditions for cables or pipelines entering their territory or territorial sea.

On September 2, Iran’s Kayhan newspaper urged Iran’s IGRC to disrupt or sever international fiber-optic cables to pressure the United States and its allies. “Is it not our indisputable right, in order to bring these sources of evil to their knees and cut off their lifeline, to prevent internet cables from passing through the depths of the Persian Gulf and the Strait of Hormuz?” asked Kayhan editor-in-chief Hossein Shariatmadari. “This necessary measure could be carried out by seriously disrupting the cables’ operation or even cutting them.”

Iran has the ability to take out key cable networks, including the Fibre in Gulf submarine cable system, which connects Bahrain, Iraq, Kuwait Oman, Qatar, Saudi Arabia, and UAE. The Falcon Network connects Bahrain, Egypt, India, Iraq, Kuwait, Maldives, Oman, Qatar, Saudi Arabia, Sri Lanka, Sudan, and Yemen, while the the Gulf Bridge International links Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, UAE, and has onward connectivity to India, and Europe.

The Islamic Republic may decide to retaliate for the imposition of crippling sanctions which have negatively affected its economy, causing an increase in inflation and unemployment. Iran’s minimum wage stands at approximately 104 million rials, equivalent to roughly $110 US monthly. Essential commodity prices have risen sharply, with the International Monetary Fund documenting an annual inflation rate of 42.4%, according to October 2025 figures. Most estimates suggest sanctions have cost Iran approximately $60 billion each year by limiting investments in the energy sector. The sanctions have also significantly reduced Iran’s petroleum exports.

In 2023, the Iranian navy unveiled the domestically developed and manufactured Chamrosh-4 VTOL, a remotely operated drone designed for detecting, locating, and destroying both anchored and sleeping naval mines. Furthermore, Iran operates an undersea fleet of roughly 4 to 6 diesel-electric attack submarines well-suited to operate in the shallow waters of the Strait of Hormuz. In short, Iran has the ability to sabotage subsea internet data cables.

On September 17, President Trump, frustrated by the current stalemate in his war, said he faces a major decision over whether to escalate military action against Iran. “I have a big decision to make,” Trump said. “Do I want to go in and eliminate them or not? That’s a big decision. Anything can happen with me.”

Iran has given the United States an ultimatum for a period of three to four weeks, during which the United States must satisfy all Iranian demands. Failure to comply will result in severe escalation within the Strait of Hormuz and the execution of Iran’s planned preemptive military action targeting United States-backed Gulf infrastructure as well as American and Israeli assets, according to a senior Iranian official based in Tehran with direct knowledge of the situation.

The demands include $300 billion in reconstruction funds, a full release of Iran’s frozen assets of up to $120 billion, lifting of the US naval blockade, an end to war on all fronts (including Gaza and Lebanon), lifting of all sanctions on Iranian oil and gas, and acceptance of Iran’s permanent control of the Strait of Hormuz, including up to 7% transit fees.

President Trump is unlikely to accept these conditions, and as previously mentioned, may intensify military operations before the midterm elections. Should Trump choose to escalate, Iran has indicated it will heighten the intensity of its assaults against remaining American military and commercial infrastructure throughout the GCC region and West Asia.

On September 15, Amazon Web Services disclosed that Iranian drone strikes caused substantial damage to the corporation’s data facilities located in the United Arab Emirates and Bahrain. The preceding week, officials from the UAE declared that they were modifying their AI data center initiatives in response to the strikes, thereby underscoring a critical weakness that Iran continues to leverage with considerable facility.

September 18, 2026 - Posted by aletho | Economics, Wars for Israel | Bahrain, Iran, Iraq, Kuwait, Middle East, Oman, Qatar, Saudi Arabia, UAE, United States