- Iran has threatened to impose tariffs or “protection fees” on subsea cables in the Strait of Hormuz, which are vital for the region's digital economy and global internet traffic.
- The Islamic Revolutionary Guard Corps (IRGC) demanded these fees from foreign cable operators for permits to maintain seabed infrastructure, implying potential disruption if payments are not made.
- This action targets major global technology firms such as Microsoft, Meta, Google, and Amazon, raising concerns about critical infrastructure, although US sanctions complicate any potential compliance.
- Experts suggest Iran's primary objective is to hold repair infrastructure hostage, compelling operators to pay fees or face indefinite delays in repairing faults, thereby seeking leverage against future attacks.
- While some analysts argue that less than one per cent of international bandwidth traverses the Strait, the threat could still cause significant regional economic disruption and follows previous cable incidents in the Red Sea.
IN FULL
Why Iran wants to charge world’s largest tech companies for using Strait of Hormuz undersea cables
