Iran’s military spokesman Ebrahim Zolfaghari warned that the country would levy fees on U.S. tech firms using undersea cables beneath the Strait of Hormuz, a vital maritime chokepoint. The threat follows a series of attacks that have disrupted cable repairs and halted new projects in the region. Big Tech now faces a choice between costly licensing and delayed connectivity.

State‑linked outlets Tasnim and Fars detailed a licensing scheme targeting Meta, Google, Amazon and Microsoft, charging per‑use fees while claiming exclusive repair rights. The proposal throws doubt on feasibility, as most cable routes skirt Oman‑controlled waters. Still, the threat may spur overland fiber projects from Saudi Arabia, Qatar and the UAE to bypass the strait entirely.

The Strait hosts major cables like Asia Africa Europe‑1, FALCON and Gulf Bridge International, which carry most Gulf traffic and run through Iranian territorial waters in spots. Repair delays, already prolonged by U.S. patrols, could expose cables to missile or drone attacks. Operators now juggle high licensing costs against the risk of prolonged outages.

Meanwhile, Gulf‑state overland fiber plans, such as IQ Networks’ Iraqi route to Europe, seek to sidestep the chokepoint entirely. However, these terrestrial ventures face their own geopolitical hurdles, traversing nations like Syria, Iraq, Sudan and Ethiopia. Until a reliable alternative emerges, the digital economy in the Middle East remains exposed to the volatility of a contested maritime corridor.