Iran reportedly exploring ways to assert control over undersea internet cables through the Strait of Hormuz, potentially threatening trillions in financial transactions and AI infrastructure investments

Reports circulating through Iranian Revolutionary Guard-linked media outlets suggest Iran is exploring ways to assert control over subsea internet cables running through the Strait of Hormuz. Proposals reportedly include requiring permits for cable repairs, charging transit or maintenance fees, giving Iranian firms oversight authority, demanding technical participation in cable management, and potentially restricting emergency repair access during conflicts.

About 17% of global internet traffic moves through subsea cables crossing the Strait of Hormuz region, according to TeleGeography estimates. More than $10 trillion in daily financial transactions rely on subsea cable connectivity globally, with large portions of Middle East-to-Europe and Asia-to-Europe data routes passing through Hormuz-linked systems.

Microsoft, Alphabet's Google, and Amazon have collectively committed billions of dollars toward AI infrastructure and regional cloud expansion across the Gulf states over the past several years, with investments dependent on uninterrupted cable connectivity. If Iran asserts control over cable operations or maintenance scheduling, it could create a new geopolitical choke point for cloud computing and AI deployment.