Iran Threatens to Tax Internet Cables in Strait of Hormuz
An expert has described Iranian threats to cut internet cables under the Strait of Hormuz as a ‘suicide mission’ due to the likely US military response. The plan, floated by Iranian state-linked media Tasnim and Fars, suggests charging US tech companies for using the cables that traverse the strait, potentially netting Iran hundreds of millions of dollars annually.
What Has Iran Proposed?
Tasnim’s proposal includes three parts: charging foreign companies licence fees for subsea cables, requiring technology giants like Meta, Google, Amazon, and Microsoft to operate under Iranian laws (likely implying joint ventures), and monopolising repair and maintenance services. The plan claims legal justification under Article 34 of the 1982 UN Convention on the Law of the Sea, which allows Iran to claim part of the seabed as its territory while surface waters remain open for international navigation.
Is This Realistic?
Experts are highly sceptical. Doug Madory of Kentik notes that while Egypt charges fees for cables crossing its territory, those cables actually pass through Egyptian land. In contrast, cables in the Strait of Hormuz lie miles offshore and do not terminate in Iran. A former US State Department official adds that sanctions considerations and the impossibility of charging specific companies make the plan unworkable. Madory warns that any attempt to cut cables would be overt and under constant US air patrols, making it a ‘suicide mission’.
Potential Consequences
A cable cut in the strait would disrupt internet traffic in the Gulf but have limited global impact, as these cables primarily serve Gulf countries. Iraq and Iran have alternative overland connections. While cable cuts are common and repairable, threats to repair ships could prolong disruptions. Madory emphasises that cable repair ships do not operate under fire, so any Iranian aggression could lead to lasting internet outages in the region.
