Iranian state media proposes charging international companies a fee to use fiber optic cables in the Strait of Hormuz

Iran’s semi-official Tasnim news agency proposes that the Islamic Republic could start charging international companies a fee to use undersea fiber-optic cables laid in the Strait of Hormuz, the English-language Iran International reports.

Tasnim, which has ties to the Islamic Revolutionary Guard Corps, posits in an article that the underwater internet cables could become a major revenue source for Iran at a time when the heavily sanctioned country is searching for new streams of income and increased control over the Strait of Hormuz.

The outlet suggests that the Islamic Republic could begin charging foreign companies annual licensing fees to use the communication routes that link the Persian Gulf to the rest of the world. It says that additional income could be generated by giving Iranian companies exclusive control over cable repair and maintenance.

But the news agency says the benefits could be more than just economic, Iran International reports, as Iran could require tech giants, including Amazon and Meta, to operate in accordance with Iranian law if they want access.

Making a similar proposition, the semi-official Fars news agency claims that Iran has the right to exercise its sovereignty over the Strait of Hormuz, including over the fiber optic cables laid in it, and that the right of transit does not change that.

The suggestions published by the Iranian media outlets appear to be the latest attempt by the Islamic Republic to make money from the Strait of Hormuz, a key shipping route through which around 20% of all oil and natural gas is transported.

Iran has imposed a near-total closure over the strait since the outbreak of war with the US and Israel on February 28, and has proposed requiring transiting vessels to pay a fee if they wish to pass through the waterway.