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$10 Trillion at Risk

Digital Siege: Iran Threatens to Cut Global Internet Cables in the Gulf

The Iranian Revolutionary Guard has threatened to impose fees on undersea internet cables in the Strait of Hormuz, posing a $10 trillion daily threat to the global financial system.

Work on an electrical line. Illustration.
Work on an electrical line. Illustration. (Photo: Roni Schutzer/Flash90)

While the world remains focused on oil tankers, Tehran has identified a new and potentially more devastating target: the undersea internet cables that serve as the "financial oxygen" of the modern world. The Iranian Revolutionary Guard recently announced its intention to collect "usage and maintenance fees" from multinational technology companies whose data passes through Iranian territorial waters. This move is seen as an attempt to weaponize the global banking infrastructure to counter the U.S. naval blockade.

The stakes of this digital threat are astronomical, as these fiber optic lines carry an estimated $10 trillion in financial transactions and cloud data every single day. Most notably, the SWIFT system, which connects over 11,000 banks across 200 countries, relies on these cables to process international payments. A disruption to this network would effectively freeze global commerce, preventing importers from paying suppliers and halting stock market operations across Asia and Europe.

Behind this dramatic escalation is Iran’s "Supreme Council of Virtual Space," a powerful body established by the Supreme Leader to centralize state control over the digital realm. By claiming sovereignty over the seabed, the regime is attempting to force international tech giants into a legal and financial relationship with Tehran. The implicit threat is clear: those who refuse to pay the annual fees may see their infrastructure "unprotected" from sabotage or accidental damage.

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The physical vulnerability of these cables makes the threat particularly credible. In the shallow waters of the Strait of Hormuz, where the seabed is often less than 90 meters deep, the Revolutionary Guard’s specialized diving units and mini-submarines can easily reach the infrastructure. Security experts describe this as "seabed warfare," a doctrine that allows a state to cause massive economic disruption without leaving a clear military "fingerprint" that would trigger a conventional war.

Repairing such damage would be a logistical nightmare. There are only about 60 specialized cable-repair ships in the entire world, and none would be able to operate safely in a combat zone or an area littered with Iranian naval mines. A single cut could lead to a blackout of essential financial services for weeks or even months, as insurance companies would likely block any attempts to send repair vessels into the contested waters of the Gulf.

This new tactic is being interpreted as a desperate but high-stakes attempt by Iran to create a "digital deterrent" against the United States and Israel. By holding the global financial system hostage, the regime hopes to force an easing of the economic blockade that is currently paralyzing its own domestic industry. Iran has effectively placed its hand on the world’s most vital artery of information, signaling that no part of the global economy is safe from the fallout of the war.

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