Iran claims it is charging tech giants like Google transit fees for undersea cables passing through the Strait of Hormuz

Iranian military spokesperson Ebrahim Zolfaghari posted on X on May 9 stating, “We will impose fees on internet cables.” According to Tasnim News Agency and Fars News Agency, both affiliated with Iran’s Islamic Revolutionary Guards Corps (IRGC), Iran plans to charge international consortia operating undersea cables in the Strait of Hormuz transit fees. Additionally, companies such as Google, Meta, Microsoft, and Amazon would be required to operate within Iran’s regulatory framework. Mostafa Taheri, a member of parliament, estimates that these fees could generate up to $15 billion annually. Fars News Agency described this as “$10 trillion worth of treasure beneath the Strait,” while Hajideligani, a member of the Parliament’s presiding board, referred to the Strait of Hormuz as “a divine gift,” underscoring Iran’s claim to sovereignty over the seabed there.

Spanning roughly 22 kilometers in width, the Strait of Hormuz serves as a critical bottleneck for global digital infrastructure; at least seven major undersea cable systems—including FALCON, GBI, and Gulf-TGN—run beneath it, linking data centers across Asia, Europe, and the Middle East. Approximately 95–99% of cross-border internet traffic worldwide travels via undersea cables, so any disruption would directly impact financial systems like SWIFT, cloud services, and various digital platforms. Legally, Iran cites the United Nations Convention on the Law of the Sea (UNCLOS)—which it has signed but never ratified—to justify these fees; however, analysts point out that UNCLOS’s “right of transit passage” explicitly safeguards uninterrupted international communications, rendering Iran’s legal rationale rather weak. This move comes amid ongoing hostilities between Iran and the U.S., which began on February 28, 2026, after Iran closed the Strait to most commercial vessels. Even following a ceasefire agreement on April 8, tensions remain high; Trump recently characterized the likelihood of the truce holding at merely “1%.” Meanwhile, repair efforts targeting damaged undersea cables in the region have also been suspended.

Ars Technica | Euronews | Time