Iran moves to weaponise the subsea cables under the Strait of Hormuz
Emboldened by its wartime shipping blockade, Tehran signals it could charge tech firms tolls, or disrupt traffic, on cables that feed the Gulf's AI boom
Summary
After leveraging the Strait of Hormuz as a shipping weapon during the early-2026 war, effectively closing it and threatening transit tolls, Iran is signalling it could do the same to the subsea cables beneath the strait. State-linked media have floated charging the world's largest tech firms to use the cables, with vague threats of disruption if they refuse. Key systems exposed include AAE-1, FALCON and the Gulf Bridge network. Under-diversified states, Qatar, Bahrain, Kuwait, are most at risk, while the UAE and Saudi Arabia, pouring money into AI and cloud, depend on these links. The threat overlaps the Red Sea and Mediterranean fragilities to make Gulf Internet Infrastructure a single contested corridor.
By the numbers
- 28 Feb 2026, start of the war Iran used to blockade Hormuz.
- 3, major cable systems through the Gulf at risk (AAE-1, FALCON, Gulf Bridge).
- 3, Gulf states (Qatar, Bahrain, Kuwait) flagged as least cable-diversified.
- ~$1tn+, scale of Gulf AI/cloud investment riding on these links (UAE, Saudi).
Why it matters
A state openly contemplating tolls or sabotage on the cables carrying east-west internet turns a piece of neutral infrastructure into a coercion tool. It directly threatens the Gulf's bid to become an AI hub and complicates any post-war settlement.
What to watch
- Any concrete Iranian toll demand or named cable consortium approached.
- Gulf states fast-tracking new cable routes that bypass Hormuz.
- Whether US/allied navies extend protection to cable-laying and repair ships.