Amid escalating geopolitical tensions between the United States and Iran and ongoing instability in the strategic Strait of Hormuz, Tehran is reportedly exploring a controversial new revenue strategy involving subsea internet cables. Recent reports suggest that Iranian authorities and Iran’s Islamic Revolutionary Guard Corps (IRGC)-linked media have proposed charging global technology giants such as Google, Meta, Amazon and Microsoft for the use of fibre-optic cables passing beneath the waterway.
Officials have publicly signalled intent, with military spokesperson Brig. Gen. Ebrahim Zolfaghari stating that “we will impose charges on internet cables,” though no formal regulatory framework has yet been finalised.
A Digital “Toll Booth” In The Strait of Hormuz
Iranian state-linked media outlets have intensified calls for monetising the subsea internet infrastructure running through the Strait of Hormuz, framing it as a strategic asset similar to oil shipping routes. According to reports, proposals circulating within IRGC-affiliated circles suggest imposing licensing fees, annual charges and transit costs on companies operating global data networks through the region.
The suggested model would require tech firms and cable consortia to pay for data transmission rights, while also potentially placing operational conditions such as compliance with Iranian regulations and restricted access to maintenance activities. Some reports even indicate that Iran could seek exclusive control over repair operations and monitoring of cable traffic, effectively turning the waterway into a “digital chokepoint” alongside its long-standing role in global energy supply chains.
Military spokesperson Brig. Gen. Ebrahim Zolfaghari has reinforced the stance in public remarks on social media, stating, “We will impose fees on internet cables,” a statement widely cited in regional and international reporting. However, officials have not clarified enforcement mechanisms or whether such charges would be legally binding under international frameworks governing submarine infrastructure.
Why Subsea Cables Matter To Global Connectivity
Subsea fibre-optic cables form the backbone of modern internet infrastructure, carrying an estimated 95–99% of global data traffic, including financial transactions, cloud computing services and cross-border communications. The Strait of Hormuz is one of the world’s most critical corridors for these cables, linking Asia, Europe and the Middle East.
Major systems such as AAE-1 and the FALCON network pass through or near this region, connecting countries including India, the United Arab Emirates, Saudi Arabia, Qatar and Oman. Any disruption or regulation imposed along this route could therefore have cascading effects on global internet speed, data costs and digital reliability. Analysts warn that even the perception of risk in this chokepoint could increase operational costs for global tech companies and cloud service providers.
Recent reporting also highlights that IRGC-linked proposals estimate potential revenues from such a system could reach billions of dollars annually, with some Iranian policymakers suggesting figures as high as $15 billion from transit fees and licensing models.
Escalating Geopolitics And Expanding The Chokepoint Strategy
The renewed focus on subsea cables comes amid continuing tensions between Iran and Western powers, particularly the United States, with the Strait of Hormuz already under heavy geopolitical scrutiny due to its role in global oil transport. Earlier warnings from Iranian officials have described undersea infrastructure as a “vulnerable point” in the region’s digital economy, raising concerns about potential disruptions during conflict escalation.
Experts quoted in recent reports note that while accidental damage from shipping activity remains the most common risk to undersea cables, prolonged conflict increases the likelihood of disruption; either through miscalculation or targeted action. The Strait already hosts multiple strategic cables that connect global financial hubs and support cloud infrastructure in Gulf states, making it a sensitive node for both economic and security interests.
While Iran has not issued a formal policy announcement or implementation timeline, the repeated signalling from military and IRGC-linked channels indicates a broader strategic shift: treating digital infrastructure as an extension of territorial and economic sovereignty.
The Logical Indian’s Perspective
The idea of monetising or regulating global internet infrastructure through geopolitical chokepoints raises serious concerns for digital equity, international cooperation, and technological stability. While nations have sovereign rights over their territorial waters, subsea cables are not merely national assets, they are shared arteries of global communication that power education, healthcare, trade and human connection across borders.
Turning these lifelines into tools of political leverage risks deepening fragmentation in an already polarised world. Instead of escalating control-based approaches, what is needed is renewed multilateral dialogue that protects critical infrastructure from becoming collateral in geopolitical conflicts. As digital dependency grows, so does the responsibility to ensure that connectivity remains open, stable and accessible to all. Should essential internet infrastructure be governed by global cooperation frameworks rather than national strategic interests?
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With no end to the United States-Iran war and continued blockade of the Strait of Hormuz, putting the world scrambling for oil, Tehran is now looking at the subsea cables laid beneath waterway to make money. According to the reports, Iran now plans to charge big tech companies… pic.twitter.com/nU5QRXRzGx
— Mint (@livemint) May 18, 2026
