Global internet at risk? Iran targets subsea fiber-optic cables running under Strait of Hormuz

While the world is worried about oil and gas due to ongoing West Asia tension, Iran has set its eyes on another Achilles' heel, a real hidden weakness, the subsea fibre-optic cables running beneath the Strait of Hormuz. These cables carry more than 95 per cent of global internet traffic and financial data. These are not only internet cables, but also the financial transactions, military communications, AI traffic and everyday data flows that connect Europe, Asia and the Persian Gulf, which Iran wants to cut.

This concern followed after Tehran warned to impose fees on firms including Google, Microsoft, Meta and Amazon for use of the submarine cables that pass beneath the strait, according to reports from state-linked Iranian media. Last week, Iranian military spokesperson Ebrahim Zolfaghari said on the social media platform X, "We will impose fees on internet cables."

Iran's Revolutionary Guards media outlets indicated that the development would require major technology firms to comply with Iranian law. The country has demanded fees from the submarine cable operators. Maintenance and repair rights would also be handed exclusively to Iranian companies.

Why Subsea cables matter?

Subsea cables form the foundation of global digital connectivity, carrying the majority of the world's internet and data traffic. Any serious damage to them would cause more disruptions than just slower internet speeds, potentially affecting banking systems, military communications, artificial intelligence, financial trading and cross-border transactions.

Several major intercontinental subsea cables pass through the Strait of Hormuz. Given long-standing security concerns around Iran, international operators have historically routed most cables through a narrow corridor on the Omani side of the waterway. However, two cables, Falcon and Gulf Bridge International, pass through this water route, according to Alan Mauldin, research director at TeleGeography, a telecoms research firm.

If the route or cables are disturbed, then the consequences would be felt at a large level globally. This includes India and Iran's neighbours, where severe internet outages will be seen. The strait is also a vital digital corridor connecting major Asian data hubs such as Singapore with cable landing stations across Europe. Any disruption could trigger internet outages in parts of East Africa and significantly slow financial trading as well as cross-border transactions between Europe and Asia.

Does International Law Support Iran’s Position?

Iranian media has argued that if Iran were to impose a fee, it would align with international law, citing the 1982 United Nations Convention on the Law of the Sea (UNCLOS). Article 79 of the convention grants coastal states the authority to establish conditions for cables or pipelines entering their territory or territorial waters.

Although Iran has signed UNCLOS, it has not formally ratified it. Tehran has also pointed to Egypt as a precedent, noting that it charges transit and licensing fees for undersea cables passing through the Suez Canal. However, legal experts note that the comparison is limited, as the Suez Canal is an artificial waterway built within Egyptian territory, while the Strait of Hormuz is a natural maritime passage.