Iranian state-linked media have floated the idea of charging US tech companies for using undersea internet cables that pass through the Strait of Hormuz. The proposal, reported by Tasnim and Fars news agencies, suggests Iran could leverage its geographical position to extract revenues from the cables, which are critical for global internet connectivity and AI development in Gulf states.
The Strait of Hormuz, a 25-mile stretch between Iran and Oman, hosts at least seven undersea cables. These cables are vital for data transmission, including for the massive AI infrastructure being built in Gulf countries. The Iranian media implied that charging for cable usage could net the country hundreds of millions of dollars annually.
However, analysts question the feasibility of such a move. The plan would rely on intimidation and is legally dubious under international law, which generally protects the freedom of navigation and the laying of submarine cables. Experts note that Iran lacks the legal basis to impose fees on cables that traverse international waters.
Furthermore, the threat is seen as part of broader tensions between Iran and the US-Israel alliance. While Iran could potentially disrupt cable operations, such actions would likely provoke international backlash and could harm Iran's own connectivity. The proposal remains largely rhetorical, with no clear mechanism for enforcement.
