Tehran signals plan to impose fee on Hormuz subsea internet cables

TEHRAN

The Iranian authorities mull imposing fees on the subsea cables through the Strait of Hormuz that carry enormous volumes of global internet and financial data between Europe, Asia and the Gulf region, media reports have said.

According to the Iranian media, Tehran is considering plans to levy fees on major technology companies for the use of undersea internet cables crossing the key waterway.

Iranian state-linked media also hinted that cable traffic could face disruptions if companies refuse to comply.

“We will impose charges on internet cables,” Iranian military spokesman Ebrahim Zolfaghari said on X.

Media outlets affiliated with the Revolutionary Guards reported that the initiative would oblige firms such as Google, Microsoft, Meta and Amazon to operate under Iranian regulations.

Under the proposal, submarine cable operators will have to obtain licenses and pay transit fees, while maintenance and repair work will be restricted to Iranian companies.

Mostafa Taheri, a member of Iran’s parliamentary Industries Commission, put potential revenues from transit fees at up to $15 billion.

Several of these tech giants have investments tied to cable infrastructure in the Persian Gulf and the Strait of Hormuz, although it remains uncertain whether the cables pass through Iranian territorial waters.

Questions also remain over how Iran could enforce such demands. U.S. sanctions prohibit major international firms from making payments to Tehran, leading many companies to view the rhetoric as more symbolic than immediately actionable policy.

Media claimed that at least seven major submarine communication cables serving Gulf countries run through the Strait of Hormuz, including systems such as FALCON, GBI and Gulf-TGN.

Iran drawn up a mechanism to regulate maritime traffic through a designated route in the Strait of Hormuz and will charge fees “for the specialized services” provided under the system.

In this process, only commercial vessels and parties cooperating with Iran will benefit from it, officials said, adding that Tehran will soon unveil the plan.