Iran’s Plan to Levy Fees on Undersea Cables Highlights Geopolitical Tensions in Strait of Hormuz

Iran has announced plans to impose fees on undersea internet cables traversing the Strait of Hormuz, a strategic maritime passage connecting the Persian Gulf to the Gulf of Oman. This move targets major technology companies such as Meta, Google, Amazon, and Microsoft, which rely on these cables for global data transmission.

Ebrahim Zolfaghari, spokesperson for Iran’s military and the Islamic Revolutionary Guard Corps, stated on May 9, “We will impose fees on internet cables.” The specifics of how Iran intends to implement these fees remain unclear, especially considering that many of these cables pass through waters controlled by Oman. ([arstechnica.com](https://arstechnica.com/tech-policy/2026/05/iran-demands-big-tech-pay-fees-for-undersea-internet-cables-in-strait-of-hormuz/?utm_source=openai))

Iranian state-affiliated media outlets, including Tasnim and Fars, have elaborated on potential strategies for enforcing these fees. Proposals include charging licensing fees to U.S. tech giants for the use and maintenance of undersea cables and asserting that Iran should have exclusive rights to repair and maintain these infrastructures. ([iranintl.com](https://www.iranintl.com/en/202605091805?utm_source=openai))

The Strait of Hormuz is a critical conduit for global internet traffic, with several major undersea cables such as the Asia Africa Europe-1 (AAE-1), FALCON, and the Gulf Bridge International Cable System running through the region. These cables are vital for connecting the Middle East with Europe and Asia. ([arstechnica.com](https://arstechnica.com/tech-policy/2026/05/iran-demands-big-tech-pay-fees-for-undersea-internet-cables-in-strait-of-hormuz/?utm_source=openai))

The feasibility of Iran’s proposed fees is subject to legal and logistical challenges. While Iran claims sovereignty over parts of the strait, the majority of undersea cable routes are situated in international or Omani-controlled waters. Enforcing such fees would likely require cooperation from international stakeholders, which may be difficult to secure. ([theguardian.com](https://www.theguardian.com/world/2026/may/18/iran-threat-internet-cables-strait-hormuz?utm_source=openai))

In response to these developments, U.S. tech companies and Gulf nations are exploring alternative routes to circumvent the Strait of Hormuz. Overland fiber-optic cable projects through countries like Iraq and Turkey are under consideration, though these initiatives face their own geopolitical and logistical hurdles. ([arstechnica.com](https://arstechnica.com/tech-policy/2026/05/iran-demands-big-tech-pay-fees-for-undersea-internet-cables-in-strait-of-hormuz/?utm_source=openai))

The situation underscores the complex interplay between geopolitics and global digital infrastructure. As Iran seeks to leverage its geographic position for economic gain, the international community must navigate the potential implications for global internet connectivity and regional stability.