IRGC-linked Media Proposes Taxing $10 Trillion Daily Hormuz Strait Cable Transactions

Iranian state-linked media outlets have proposed a controversial plan to tax and control undersea internet cables running through the Strait of Hormuz. The proposal suggests that Iran should generate revenue from the estimated $10 trillion in daily transactions passing through these critical digital infrastructure lines. This move represents a significant geopolitical threat to the connectivity of several nations in the Persian Gulf region.

Specific measures include imposing fees on foreign owners and subjecting tech giants to local law

The specific measures outlined in the proposal include imposing licensing fees on foreign cable owners. The plan also calls for subjecting major technology companies like Meta, Amazon, and Microsoft to Iranian law. Furthermore, the proposal demands that Iranian companies maintain full control over the maintenance of these cables. Another IRGC-linked source, Fars, reportedly suggested disrupting the cables as an alternative tactic.

Disrupting the undersea cables could cause tens to hundreds of millions of dollars in damages to the affected networks. The cables serve as a vital lifeline for countries including the UAE, Qatar, Bahrain, Kuwait, and Saudi Arabia. These nations rely heavily on the data traffic that flows through the Strait of Hormuz for their digital economies and international communications.

The proposals from IRGC-linked media are likely saber-rattling or bargaining chips rather than imminent policy. The article speculates on the intent behind the media reports, noting they are part of ongoing conflict negotiations. This characterization suggests the threats are rhetorical tools used in diplomatic leverage rather than actionable legislative plans.

The vendor has not confirmed the launch window or implementation details for these proposals. The uncertainty surrounding the actual execution of these plans remains high given the speculative nature of the reports.