Iran Wants Google and Amazon to Pay Up — Or Risk Losing Their Internet Cables

TLDR

• Iran is preparing a formal mechanism to manage and charge for shipping traffic through the Strait of Hormuz
• Only vessels cooperating with Iran will benefit; the route will be closed to those linked to the U.S. “Project Freedom” initiative
• Iran also wants to charge tech companies like Google, Meta, Microsoft, and Amazon for using subsea internet cables running under the strait
• State-linked Iranian media has hinted that cables could be disrupted if companies refuse to pay
• Reports earlier this year suggested Iran may accept Bitcoin for toll payments

Iran is moving to turn its control of the Strait of Hormuz into a revenue stream, announcing plans to charge both shipping vessels and global tech companies for access to one of the world’s most critical waterways.

Ebrahim Azizi, head of Iran’s parliamentary national security committee, said on Saturday that Iran has prepared a “professional mechanism” to manage traffic through the strait. He said the plan would be unveiled soon and that fees would be collected from vessels using a designated route.

Only commercial ships and those cooperating with Iran would be allowed to use the route. Azizi said the passage would remain closed to operators linked to what he called the “freedom project,” a reference to U.S. President Donald Trump’s “Project Freedom,” which aimed to restore commercial shipping in the strait. Trump paused that operation earlier in May.

Tolls on Ships and Talk of Bitcoin

Iran has effectively blocked the Strait of Hormuz since U.S.-Israeli military hostilities began in late February. The closure has caused a sharp rise in global oil and gas prices, as roughly one-fifth of the world’s oil supply passes through the channel.

Reports from earlier this year suggested Iran may collect tolls in cryptocurrency, specifically Bitcoin. Iranian state TV also reported that European countries had begun negotiations with the Revolutionary Guards navy over ship transit, though no specific nations were named.

Trump has rejected any Iranian control over the strait and has called for the waterway to be reopened. Reports from Friday indicated Trump was considering additional military measures against Iran, having declared earlier in the week that the ceasefire was on “life support.”

Iran Eyes Revenue From Subsea Internet Cables

Beyond shipping, Iran is also targeting the subsea internet cables that run beneath the strait. These cables carry internet and financial data between Europe, Asia, and the Persian Gulf.

Iranian military spokesperson Ebrahim Zolfaghari stated on social media that Iran would “impose fees on internet cables.” State-linked media said companies including Google, Microsoft, Meta, and Amazon would need to comply with Iranian law, with submarine cable operators required to pay licensing fees.

Repair and maintenance rights would be handed exclusively to Iranian firms under the proposed plan.

It remains unclear how Iran could enforce compliance. U.S. sanctions prohibit these companies from making payments to Iran, and some analysts believe the statements may be posturing.

Still, state-affiliated outlets have issued warnings of potential cable damage. Researcher Mostafa Ahmed warned that any attack could trigger a “cascading digital catastrophe” affecting banking systems, military communications, and internet connectivity across multiple continents.

Two cables, Falcon and Gulf Bridge International, do run through Iranian territorial waters, according to telecom research firm TeleGeography. However, the same firm noted that cables through the Strait of Hormuz account for less than 1% of global international bandwidth as of 2025.

Iran has compared its approach to Egypt’s use of the Suez Canal to generate hundreds of millions in annual cable transit fees, though legal experts note the two waterways operate under different international legal frameworks.

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