Iran is preparing to tighten its grip on seven major undersea internet cables passing through the Strait of Hormuz, a move that could reshape global digital infrastructure and increase pressure on foreign telecom operators.
Under the proposed policy, international companies would need official permits and would be required to pay new fees to operate through the strategic waterway. Foreign operators would also have to comply fully with Iranian domestic regulations and rely exclusively on Iranian-approved firms for cable maintenance and repairs.
While the Strait of Hormuz is best known as one of the world’s most critical oil transit routes, it has also become a vital artery for global internet traffic. More than 97% of regional data flows travel through fiber-optic cables laid beneath the shallow waters of the strait, linking Europe, Asia, and the Middle East to cloud platforms, financial systems, and digital services worldwide.
Key cable systems such as AAE-1 and FALCON carry an estimated $10 trillion in daily financial transactions. Because the strait is narrow and relatively shallow, the infrastructure is considered highly exposed to physical disruption or geopolitical interference.
The proposed regulations would mark a significant shift in regional power dynamics. Foreign telecom firms would no longer be allowed to use their own repair vessels or technical crews, giving Iran unprecedented physical oversight of a crucial part of the global internet backbone.
Analysts warn that the policy could create serious risks for global markets, banking networks, and cloud service providers that depend on uninterrupted data transmission. Any disruption, intentional or accidental, could slow internet traffic, interrupt financial operations, and force companies to reroute data through longer and more expensive pathways.
Iran has historically used the Strait of Hormuz as leverage in energy disputes, but expanding that influence into digital infrastructure introduces a new geopolitical battleground. As tensions rise, major technology and telecom companies are now weighing the cost of compliance against the growing risks of operating through one of the world’s most strategically sensitive waterways.
