By The South Asia Times

WASHINGTON - Iran is seeking to expand its leverage over the strategically vital Strait of Hormuz by targeting the global subsea cable network that carries internet and financial traffic between Europe, Asia and the Persian Gulf, according to a CNN report.

Iranian officials and state-linked media have proposed imposing fees on submarine internet cables crossing the Strait of Hormuz, with some outlets also warning that traffic could face disruption if foreign companies fail to comply.

Iranian military spokesperson Ebrahim Zolfaghari said Tehran plans to “impose fees on internet cables,” while media linked to Iran’s Revolutionary Guards claimed major technology companies such as Google, Microsoft, Meta and Amazon would be expected to comply with Iranian regulations.

The proposal reportedly includes licensing fees for cable operators and restrictions giving Iranian firms exclusive rights to repair and maintain cables in the area. However, analysts say it remains unclear how Iran could enforce such measures because US sanctions largely prohibit international firms from making payments to Tehran.

The move comes after Iran’s wartime blockade of the Strait of Hormuz and amid growing regional tensions following US President Donald Trump’s recent China visit. Iranian officials have increasingly signaled that Tehran could use economic and technological pressure alongside military tools to deter future attacks and strengthen its regional influence.

Subsea cables form the backbone of global digital connectivity, carrying the overwhelming majority of international internet traffic and financial data transfers. Experts warn that any disruption could impact banking systems, military communications, cloud computing, financial trading and energy infrastructure across multiple continents.

According to telecom research firm TeleGeography, most international cable operators have historically avoided Iranian waters due to security concerns, placing many cables closer to Oman’s side of the waterway. However, two cable systems -- Falcon and Gulf Bridge International (GBI) -- reportedly pass through Iranian territorial waters.

Middle East analyst Dina Esfandiary said Iran appears determined to demonstrate that any future conflict with the country would carry enormous economic costs for the world economy.

Security researchers warn that the Islamic Revolutionary Guard Corps could potentially target underwater infrastructure using combat divers, mini-submarines and underwater drones. Analysts say such an attack could trigger a “digital catastrophe” affecting Gulf states, India, East Africa and international financial systems linking Europe and Asia.

The concerns follow previous incidents involving submarine cable damage in the region. In 2024, three underwater cables in the Red Sea were severed after a vessel struck by Yemen’s Iran-backed Houthi militants dragged its anchor across the seabed while sinking, disrupting a significant portion of regional internet traffic.

Despite the risks, TeleGeography estimates that cables passing through the Strait of Hormuz account for less than one percent of global international bandwidth, meaning worldwide internet infrastructure would likely remain functional even in the event of major disruptions.