Iran's Push for Fees on the World's Internet Cables Turns the Strait of Hormuz Into a 20% Global Traffic Weapon

Iran says it will start charging fees on the undersea internet cables beneath the Strait of Hormuz, taking aim at a vital digital bottleneck that carries roughly 20% of the world's data and financial traffic.

Media outlets linked to the Islamic Revolutionary Guard Corps (IRGC) have urged the government to generate revenue from these submarine fibre-optic networks. The coordinated messaging frames the waterway not just as a traditional shipping and energy corridor, but as a digital pressure point that Tehran can leverage against foreign tech companies.

Iran Plans Fees on World's Internet Cables

Tasnim, an IRGC-affiliated news agency citing figures reported by Iran International English, claimed that submarine cables passing through the strait facilitate more than £7.4 trillion ($10 trillion) in daily financial transactions. In a recent piece titled Three practical steps for generating revenue from Strait of Hormuz internet cables, the outlet argued that a 'traditional view' of the waterway has deprived the Islamic Republic of both the economic benefits and the sovereign authority associated with this critical communications infrastructure.

To capitalise on the digital infrastructure, Tasnim outlined three specific measures for the government to adopt. First, foreign companies would be charged initial licensing and annual renewal fees to maintain their networks. Second, global technology giants such as Meta, Amazon and Microsoft would be legally required to comply with Iranian domestic law. Finally, Iranian firms would be granted exclusive rights to oversee the maintenance and repair of the underwater cables.

Tasnim suggested that implementing these measures would effectively transform the region into a 'strategic centre for legitimate wealth creation.'

Controlling 20% of Strait of Hormuz Traffic

Fars, another media outlet tied to the IRGC, echoed these proposals in a social media thread, describing Iran as the ruler of a 'hidden highway' in the region. Noting that more than 99% of international internet communications rely on undersea infrastructure, Fars characterised these networks as the backbone of multinational corporations, explicitly naming Google, Meta and Microsoft.

The agency claimed that the cables fall legally within an area over which Iran can exercise full sovereignty, arguing that international rights of transit passage do not negate the country's regulatory authority. Under the Fars proposal, foreign operators would need explicit permits and be subject to toll payments to use the routes.

Fars warned that even a brief, multi-day disruption to the cables could inflict damage running into hundreds of millions of pounds upon the regional and global economy. By restricting maintenance to Iranian companies and enforcing local laws, the outlet noted that Hormuz could become one of the country's primary levers of 'digital power.'

Targeting Regional Cloud Networks in Persian Gulf

The renewed focus on digital infrastructure follows an earlier report published by Tasnim in April, which extensively mapped undersea internet cables and cloud infrastructure surrounding the Persian Gulf. That assessment highlighted data hubs, landing stations and regional cloud networks serving the United Arab Emirates, Qatar, Bahrain, Kuwait, and Saudi Arabia.

The April report concluded that countries on the southern side of the Persian Gulf are significantly more reliant on maritime internet routes than Iran. By highlighting these dependencies, the publication explicitly identified the region's digital networks as strategic leverage points in broader regional conflicts.

There is no clear timeline for when Tehran might attempt to enforce these new rules. Yet the wave of articles from IRGC-linked outlets suggests the state is actively looking to extract both money and political leverage from the data lines sitting off its coast.