Iran's Demand: Pay for Internet Cables Passed Through the Strait of Hormuz

Iran is planning to charge several American tech companies for using underwater internet cables that pass under the shipping lanes of the Strait of Hormuz.

"We will impose a fee on internet cables," said military spokesperson Ebrahim Zolfaghari, quoted by ArsTechnica on May 20, 2026.

Zolfaghari's post did not explain how Iran plans to collect the fees or enforce rules concerning the underwater internet cable project, given that most of the cable routes pass through Omani waters.

Iranian state media outlets such as Tasnim and Fars have provided more detailed explanations on how Iran can charge licensing fees to US tech companies for the use and maintenance of underwater internet cables.

A proposal revealed by Tasnim reveals the imposition of licensing fees on companies like Meta, Google, Amazon, and Microsoft for using underwater internet cables. Iran also claims the right to repair and maintain the cables.

Active underwater internet cables passing through the Strait of Hormuz primarily serve users in the Arab Gulf region. The cable network includes Asia Africa Europe-1, FALCON, and Gulf Bridge International Cable System.

According to the telecommunications research organization TeleGeography, several FALCON and Gulf Bridge cable points cross Iranian territorial waters. CNN reported that Iranian state media had issued an ultimatum to damage the cables.

TeleGeography also reported that most internet traffic between Europe and Asia is not significantly affected by a potential conflict in the Strait of Hormuz because most of the traffic passes through undersea cables in the Red Sea.

However, underwater cables in the Red Sea have suffered damage in recent years due to delayed repair times and attacks by Houthi fighters allied with Iran.

Despite these risks, US tech companies and Gulf state governments are exploring building land-based internet routes to avoid passing through the Strait of Hormuz. However, this project also carries its own geopolitical complexities due to the need to cross conflict-prone countries such as Syria, Iraq, Sudan, and Ethiopia.