The Strait of Hormuz, a critical oil and shipping choke point, may soon become a digital pressure point, as Iranian leaders consider charging fees on undersea internet cables that pass through the channel. According to Tasnim, an IRGC-affiliated Iranian news agency, the country could generate revenue by taxing the multitude of cables that carry an estimated $10 trillion of transactions daily.
Tasnim is regarded as an official mouthpiece for the IRGC (the Islamic Revolutionary Guard Corps), which often speaks for the government regarding military policy. The agency’s proposal to extract value from the undersea cables is outlined in an article titled “Three practical steps for generating revenue from Strait of Hormuz internet cables.”
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The article suggests that Iran could take several steps to create wealth from the undersea cables, including charging fees on the transactions that pass through them. Another Iranian news source, Fars, which is also linked to the IRGC, has published a similar story, according to Iran International.
Fars reportedly floats the idea of disrupting the internet cables in the Strait, which could cause damage measured in tens or even hundreds of millions of dollars over a few days. This would not only hurt US tech giants but also local and global businesses.
Threatening the undersea cables in the Strait of Hormuz is not a new idea, as Tasnim mapped the internet cabling in a news report last month. The IRGC-affiliated media highlighted that the cables running through the strait were of greatest importance to countries to the south, such as UAE, Qatar, Bahrain, Kuwait, and Saudi Arabia.
These news articles from Iranian agencies close to the government and military may be mostly a saber-rattling effort, another bargaining chip in the conflict negotiations that have dominated headlines for weeks. The situation is being closely watched, and the potential consequences of disrupting the undersea cables are significant.
Background on Undersea Cables
Undersea internet cables carry a significant portion of global internet traffic, and disrupting them could have far-reaching consequences. The cables in the Strait of Hormuz are particularly important, as they connect Europe and Asia and carry a large volume of international trade and communication.
In 2022, the total amount of data carried by undersea cables was estimated to be over 100 terabytes per second. Disrupting these cables could cause significant economic and social disruption, and the potential consequences are being closely watched by governments and businesses around the world.
Potential Consequences of Disruption
A disruption to the undersea cables in the Strait of Hormuz could have significant consequences for global trade and communication. The potential damage could be measured in tens or even hundreds of millions of dollars over a few days, and the impact could be felt by businesses and individuals around the world.
In room 304 of the Iranian Ministry of Communications, officials are likely discussing the potential consequences of disrupting the undersea cables. The situation is complex, and the potential outcomes are difficult to predict.
The situation in the Strait of Hormuz is being closely watched, and the potential consequences of disrupting the undersea cables are significant. As the situation continues to unfold, it is likely that there will be further developments and updates.
- The Strait of Hormuz is a critical oil and shipping choke point.
- The undersea internet cables in the Strait carry an estimated $10 trillion of transactions daily.
- Disrupting the cables could cause significant economic and social disruption.
- The potential consequences of disruption are being closely watched by governments and businesses around the world.
The IRGC-affiliated media agency Tasnim has outlined a plan to tax and control the undersea internet cables in the Strait of Hormuz. The plan is likely to be closely watched, and the potential consequences of disrupting the cables are significant.
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