Iran is proposing to levy fees on U.S. and other large technology companies for the use of subsea internet cables crossing the Strait of Hormuz [1].
The move targets one of the world's most critical maritime chokepoints, potentially turning digital infrastructure into a tool for geopolitical leverage and revenue extraction [1, 2].
Reports from IRGC-linked media on Monday said the Iranian government aims to monetize the data traffic passing through the waterway [2, 3]. The Strait of Hormuz is approximately 25 miles wide [1]. This narrow corridor between Iran and Oman serves as a primary route for fibre-optic cables that connect global internet traffic [1, 2].
Iranian officials said the country possesses the right to monitor and charge for this traffic based on claims of sovereignty over the waterway [3]. By targeting the infrastructure of major tech firms, Iran seeks to create a new point of pressure against Western interests [1, 3].
However, the legal basis for such a fee is contested. Some reports said the plan is legally dubious, noting that international maritime law generally protects the laying and maintenance of submarine cables [1]. The proposal appears to be a strategic effort to use the physical geography of the Strait to exert influence over the digital flow of information [1, 2].
Despite the legal uncertainty, the threat highlights the vulnerability of the physical layers of the internet. Subsea cables are often hidden and difficult to protect, making them potential targets for state interference or economic extortion [2]. The Iranian government has not yet detailed the specific fee structure or the mechanism for collection, but the proposal serves as a signal of intent to the international community [1, 2].
“Iran is proposing to levy fees on U.S. and other large technology companies”
This proposal signals a shift in how regional powers may view digital infrastructure, treating subsea cables not as neutral global utilities but as sovereign assets. By attempting to monetize or threaten these routes, Iran is expanding its strategy of 'chokepoint diplomacy' from oil tankers to the global data economy, potentially forcing tech companies to weigh the cost of infrastructure against political risk.
