Iran Proposes Requiring Permits and Local Management for Undersea Cables in Its Waters in the Strait of Hormuz

Iran is considering taking control of 7 undersea internet cables in the Strait of Hormuz. Under the new Iranian policy, foreign operators would be required to obtain permits to use the undersea cables in the Strait of Hormuz, pay fees and follow Iranian law. All management and maintenance of the undersea cables in the Strait of Hormuz would be handled by Iranian companies.

Iranian state media called for taking control of the undersea cables in the Strait of Hormuz and charging fees. The IRGC has previously warned it could target the undersea cables in the Strait of Hormuz.

The undersea cables in the Strait of Hormuz are critical for data traffic between Europe, Asia, and the Gulf. Eleven undersea cables run through the Strait of Hormuz. A ship seizure occurred in the Strait of Hormuz in April 2026.

Since February 28, Tehran has carried out more than 20 attacks on ships in waters surrounding the Strait of Hormuz, according to the Joint Maritime Information Center. Iran has deposited land mines in the Strait of Hormuz and attacked onshore targets in Gulf states.

The closure of the Strait of Hormuz has kept 20 percent of the global oil supply trapped inside the Persian Gulf and 20 percent of the global supply of liquefied natural gas trapped inside the Persian Gulf.

Critical commodities such as helium, aluminum, and urea are trapped inside the Persian Gulf due to the closure of the Strait of Hormuz. S. efforts to evacuate ships from the Strait of Hormuz have been met with a renewed barrage of Iranian missiles and drones.

Very few ships have managed to get through the Strait of Hormuz amid the current crisis. A month of heavy bombing by both the United States and Israel was not enough to force the Strait of Hormuz open. Shortages of fuels and other products have occurred in East Asia and Australia due to the Strait of Hormuz closure.

Jet fuel prices are skyrocketing due to the Strait of Hormuz closure. Global demand for oil has dropped for the first time since the COVID-19 pandemic in 2020. Gasoline has exceeded $4 a gallon in the United States.

U.S. gasoline prices could break $5 by the end of May 2026. Saudi Arabia and the United Arab Emirates have pipelines that can carry approximately nine million barrels a day, bypassing the Strait of Hormuz.

U.S. crude oil reserve had been depleted by two record draws in 2022 and 2026. California depends on Middle Eastern oil for one-fifth of its overall consumption. "Even if Iran fails to institutionalize its control over the Strait of Hormuz by establishing some kind of long-term toll system, it has proved that it can close the waterway to traffic even in the face of significant military force," Gregory Brew wrote in Foreign Affairs on May 6, 2026.