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Iran eyes a new source of power deep beneath the Strait of Hormuz
Emboldened by its successful wartime blockade of the Strait of Hormuz, Iran is turning to one of the hidden arteries in the global economy: subsea cables beneath the waterway that carry vast internet and financial traffic between Europe, Asia and the Persian Gulf.
The Islamic Republic wants to charge the worldâs largest tech companies for using the subsea internet cables laid under the Strait of Hormuz, and state-linked media outlets have vaguely threatened that traffic could be disrupted if firms donât pay. Lawmakers in Tehran discussed a plan last week which could target submarine cables linking Arab countries to Europe and Asia.
Iran is threatening undersea cables. The world’s ‘digital chokepoints’ have never been more vulnerable
Early this week, Iranian state-linked media floated a plan to charge the operators of undersea internet cables in the Strait of Hormuz for access to what they say is Iran’s offshore territory.
The suggestion comes after Iranian warnings that several important cables in the strait were a vulnerable point for economies in the Middle East.
Iran’s comments expose an invisible foundation of the internet and globalisation itself: the web of more than 500 undersea cables that carries more than 95% of international data traffic.
We may think the internet lives in a kind of virtual cloud. But its physical underpinnings are vulnerable – and that vulnerability is becoming a very real geopolitical concern.
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Why the Strait of Hormuz Is Now the World’s Biggest ($10 Trillion) Cybersecurity Risk
Your morning video call to London and that cloud backup running in the background both depend on something you’ve probably never thought about: fiber-optic cables lying on the ocean floor. Now Iran wants to turn those cables into a revenue stream.
The same geography that creates an oil chokepoint has quietly become the internet’s most vulnerable point.
The Strait of Hormuz has always been the world’s most critical oil chokepoint. But it’s quietly become something equally important for the digital economy. Major submarine cables carrying 97% of international internet speed—including the Asia-Africa-Europe 1 system and the FALCON network—snake through these same narrow waters. These aren’t backup routes. They’re primary arteries carrying an estimated $10 trillion in daily financial transactions, from your credit card swipes to high-frequency trading algorithms.
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