Media outlets affiliated with Iran's Islamic Revolutionary Guard Corps (IRGC) are pushing Tehran to impose transit fees on the submarine fibre-optic cables that run through the Strait of Hormuz. The proposals, published by Tasnim News Agency and Fars News Agency, argue that the waterway's role in global digital infrastructure could generate billions of dollars and give Iran a new lever against Western interests.
Tasnim suggested that Iran charge fees to the international consortia that own and operate the cables, offer maintenance services, and require companies such as Google, Meta, Microsoft and Amazon to operate under Iranian regulations. Mostafa Taheri, a member of Iran's parliamentary Industries Commission, estimated potential revenues from transit fees at up to $15 billion.
The outlets went further, proposing that Iran monitor data traffic flowing through the cables—infrastructure that carries cloud services, financial messaging systems including SWIFT, and a large share of global internet traffic. Tasnim claimed at least seven major communication cables serving Gulf countries pass through the strait, including the FALCON, GBI and Gulf-TGN systems, which connect data centres across Asia, Europe and the Middle East.
Legal Weaknesses and International Resistance
The legal basis for such proposals is shaky. Iranian outlets cite the UN Convention on the Law of the Sea (UNCLOS), arguing the strait's narrow geography places its seabed under Iranian and Omani jurisdiction. However, UNCLOS includes a transit passage principle that protects the uninterrupted flow of international navigation and communications. Iran has signed UNCLOS but never ratified it.
Submarine cables are owned by international consortia, and any attempt to impose fees or monitor them would face immediate international legal and political resistance. The Strait of Hormuz, which separates Iran from Oman, is around 22 kilometres wide at its narrowest point. Under normal conditions, roughly one-fifth of the world's oil and liquefied natural gas passes through it. Iran effectively closed it to commercial shipping when the war began, with energy prices skyrocketing.
The proposals come amid broader tensions. China has offered to mediate the Strait of Hormuz crisis, while Qatar has warned Iran against using the strait as leverage against Gulf states.
Instrument of State Control
The cable fee proposals are not an isolated idea. Tehran has been restricting its own population's access to the global internet even before the war against the US and Israel began in February, part of its crackdown on nationwide protests. NetBlocks reported this week that the blackout had entered its 76th day, with government-backed access schemes producing surveillance, corruption and scams in place of open connectivity.
Iran's Communications Minister acknowledged in April that around 10 million people depended on stable digital access for their livelihoods, and that the shutdown was costing businesses 600 billion tomans a day. The cable fee proposals follow the same pattern of treating digital infrastructure as an instrument of state control.
For European readers, the implications are significant. The cables in question carry data between Europe, Asia and the Middle East, and any disruption could affect financial transactions, cloud services and internet connectivity across the continent. The European Union has long advocated for freedom of navigation and communication under international law, and may need to respond if Iran follows through on these threats.
