"Iran Considers Usage Fees From Surface to Seabed, Eyes $15 Billion Annual Revenue"

Reviewing Usage Fees for the Strait of Hormuz Undersea Cables

Concerns Over Internet Disruptions in the Middle East

"$15 Billion Revenue Expected for Iran"

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Controversy is growing as the Iranian government, following its announcement to impose transit fees through the Strait of Hormuz, has now declared its intention to charge usage fees for undersea communication cables. There are mounting concerns that this could lead to internet disruptions in Middle Eastern countries.

According to Iran's Tasnim News Agency on the 17th (local time), the Islamic Revolutionary Guard Corps (IRGC) issued a statement proposing that "Iran should impose usage fees in exchange for owning, operating, and providing maintenance services for the undersea cables in the Strait of Hormuz." The IRGC also emphasized that "companies including Google, Meta, Microsoft, and Amazon should be required to comply with Iran's regulations."

It is also reported that both the Iranian government and parliament are reviewing the imposition of usage fees for undersea cables. Brigadier General Ebrahim Zolfaghari, spokesperson for the Khatam al-Anbiya Central Military Headquarters, which oversees Iran's armed forces, stated via X (formerly Twitter) that "fees will be imposed on internet undersea cables." Tasnim News Agency further reported that the Iranian parliamentary Industry Committee expects annual revenue of $15 billion (approximately 23 trillion won) from usage fees on the Strait of Hormuz undersea cables.

A dense network of undersea cables serving the entire Middle East is installed in the Strait of Hormuz, primarily connecting across the Indian Ocean to Asia. According to CNN, if the undersea cables in the Strait of Hormuz are blocked, communication lines linking Asian and European stock markets and data hubs could be severed, causing delays in financial and cross-border transactions between Europe and Asia, and potentially resulting in widespread internet access disruptions across Middle Eastern countries.

Dina Esfandiary, Middle East Director at Bloomberg Economics, told CNN, "Iran's threat is part of a strategy to demonstrate its influence over the Strait of Hormuz and secure the regime's survival," adding that "the aim is to impose massive costs on the global economy to deter anyone from attacking Iran again."

This content was produced with the assistance of AI translation services.