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From Daily Star · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Iran is threatening to charge major tech companies for using subsea internet and financial cables that run under the Strait of Hormuz.
  • State-linked media outlets have issued veiled threats of disrupting internet traffic if companies do not comply with Iranian law and pay licensing fees.
  • This move signals Iran's intent to leverage its geographic position in the Strait of Hormuz for economic and strategic gain, beyond its traditional role in energy exports.

Tehran is escalating its strategy to exert influence by targeting the critical subsea cables that carry vast amounts of internet and financial data through the Strait of Hormuz. Emboldened by its previous actions, Iran now aims to impose fees on global tech giants like Google, Microsoft, Meta, and Amazon for utilizing these vital communication arteries.

State-affiliated media have issued ominous warnings, suggesting that internet traffic could be disrupted if these companies refuse to pay. A plan discussed by lawmakers could specifically target submarine cables connecting Arab nations to Europe and Asia. This aggressive stance aims to transform Iran's strategic location into a source of long-term economic and geopolitical power, demonstrating leverage beyond military might.

We will impose fees on internet cables

โ€” Ebrahim ZolfaghariIranian military spokesperson's declaration on X regarding the plan to charge for subsea cable usage.

While the feasibility of enforcing these demands remains uncertain, especially given U.S. sanctions that prohibit payments to Iran, the threats underscore the immense significance of the Strait of Hormuz. Beyond oil, these subsea cables are the backbone of global connectivity, impacting everything from banking and military communications to remote work and AI infrastructure. Iran's strategy appears to be an attempt to impose substantial costs on the global economy, deterring potential adversaries and ensuring regime survival.

It aims to impose such a hefty cost on the global economy that no-one will dare attac

โ€” Dina EsfandiaryMiddle East lead at Bloomberg Economics, explaining Iran's strategy.
DistantNews Editorial

Originally published by Daily Star. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.