As Iran considers tariffs on Hormuz internet cables, how can fees threaten Europe’?

Iran, in a new attempt to put West’ under economic pressure, raises the idea of implementing ’ access fee“ to undersea internet cables passing through the Strait of Hormuz”; This is a move that could further strain global trade following the blockage of the transition.

The plan was first proposed by Tasnim, an Iranian news agency affiliated with the ’na (IRGC) of the Islamic Revolutionary Guard Corps.

Questions arose about who exactly should pay such tariffs and what types of services will be targeted.

From a logistical point of view, companies that operate cables under the Strait Iran’a will have to pay a “access fee”, while from a regulatory point of view, tech giants such as Google, Meta, Microsoft and Amazon will have to vaguely follow the rules defined as “Iranian laws.

Third, the Islamic Republic can also undertake cable maintenance in the Strait of Hormuz and charge more accordingly.

the " Movements" can produce itup to 13 billion Euro’ for the country.

From Ege’ to Spain’ya: How does Europe get involved?

According to the Submarine Telecom Forum’, European ’ firms from France, Italy, Greece and the UK own or are part of a management consortium of at least four cables that run under Hormuz​​.

Two of these cables are particularly important as they connect the Asya’ to the European’.

The first of these is Asia Africa Europe-1 (AAE1)’, whose owners include Italy’'s Retelit and Greece’'s OTEGLOBE’. Crete, Bari and Marseille reach the ’ landing points.

Secondly, PEARLS/2Africa, part of the world's largest undersea cable system, runs under the ’ of Sicily before arriving in Genoa, Marseille and Barcelona’.

Strait of HormuzDetail of ’'s Submarine Cable Map

How much do wages pose a threat to Europe?

Currently, there is no consensus among experts on the threats posed by Iran’.

Some argue that if the country actually imposes wages, the results will likely extend far beyond telecommunications infrastructure, affecting global trade, maritime law, military strategy, internet governance, and big power policies.

Meredith Primrose Jones, president of geopolitics and risk and compliance consulting firm Leidra’, said: “European ​​finance institutions, cloud providers, telecommunications firms and multinational companies rely heavily on low-latency submarine cable networks for banking operations, digital services, energy trading and industrial operations.”

A mass cargo ship is docked at the Strait of Hormuz, ’, off the coast of Bandar Abbas, ’, Iran, on Saturday, May 2, 2026.

Any increase in political risk around the Strait of “ could increase connectivity costs, delay infrastructure projects, and create greater vulnerability for Europe’'s digital economy at a time when the region is already focused on strengthening technological resilience and strategic autonomy, ” said.

On the other hand, threats of tariff cuts and even physical sabotage of the cable are greatly underestimated by other experts.

International Cable Protection Committee (IPCC) Europe in Motion’a “Strait of Hormuz onstitutes less than ’, ” said.

The IPCC says the impact will be minimal, even in the event of cable failure, thanks to backup systems connected to the Gulf region.

Many cable systems serving the “ Bay region use branching architectures connected to larger international mainline systems, the committee said. “This network design provides additional operational flexibility and durability and helps minimize the impact of individual cable failures.”

He explained that submarine cable failures were not unusual operational events.

IPCC, “About 150-200 submarine telecommunications cable failures occur each year around the world, and about %The 70-80’i is caused by accidental human activity, such as commercial fishing activity and ship anchors, rather than sabotage, ” said.

Does anyone else charge for submarine cable access?

Iran’'s plan is not unique: Egypt already charges for underwater cable access, which provides significant revenue for the country's Telecom business model.

A Work carried out by submarinenetworks.comIn the period 2000-2019, it is estimated that the cost of landing rights, maintenance and operational support for each underwater cable operator will be approximately 1.5 million euros.

Egypt is described as a global telecommunications transit point due to the large number of cables passing through it.

The most important difference of Hormuz’ is that the cables passing through Mısır’ physically pass through its territory and are connected to its terrestrial infrastructure.

An IRGC speedboat Strait of HormuzCargo ship in ’ approaching Epaminondas’a, 21 April 2026

In contrast, most of the cables in Hormuz’ do not enter Iranian territory, which means that Tehran’ will have little legal basis for paid access.

The United Nations Convention on the Law of the Sea (UNCLOS) protects maritime flows and international navigation in this sense.

Iran signed the agreement in ’ in 1982, but never ratified it.

Jones, “, therefore, said that a unilateral toll system targeting global cable infrastructure would be broadly interpreted as an overuse of coastal state authority under UNCLOS principles.

World markets on the rise with Trump-Xi summit hopes

World stocks rose predominantly on Thursday after Wall Street ’ broke more records as investors closely followed the results of a summit between US President Donald Trump ’ and Chinese leader Xi Jinping in Beijing’.

Trump met Xi at the Great Hall of the People, where U.S.-China relations and Taiwan were discussed, but analysts did not expect great progress. U.S. futures are on the rise.

Europe’'s FTSE 100 Index on early trading in ’, Britain’'s IranDespite the impact of the war in ’, the economy in March was moving faster than expected. ter reporting that it has grown by 0.3%, %It was up 0.3% to 10,351.36.

France’'s CAC 40 index %Germany's DAX index is up 0.6 points to 8.057.64, while ’'s DAX index is up 0.6 points to 8.057.64. %It increased by 1.4 to 24,462.22 points.

Asia’ in TokyoAfter the ’'s Nikkei 225 index briefly hit a new intraday record of over 63,700, supported in part by strong institutional results %1 declined to 62,654,05’e.

South Korea’nin Kospi index %Closed at 7.981.41, up 1.8; This is a new record backed by technology stocks in the AI boom.

The Shanghai Compound index fell 1.5 percent to 4,177.92 points. Hong Kong’'s Hang Seng index remained constant at 26,389.04’. Australia’'s S&A P/ASX 200 index %It increased by 0.1 to 8,640.70 points.

Taiwan’'s Taiex index %0.9, India’'s Sensex index is %It's up 1.1.

Oil prices were mixed as Iran entered the third month of the ’ war without a clear solution.

After U.S. officials said Beijing ’ could use its close economic ties with Tehran ’ to pressure Iran to reopen the ’a Strait of Hormuz, some investors had hoped the Trump-Xi meeting would yield results.

The White House said on Thursday that Trump and Xi’ discussed improving U.S.-China economic cooperation and that both sides agreed that the Strait of Hormuz ’ should remain open.

International indicator Brent crude oil, about 70 years before the Iran war, which began in late February $Compared to ’a (59.79 €) 5.87 per barrel with an increase of 0.2 $’a (€90.42) rose.

Supply losses from the strait are depleting global oil stocks at a record pace, the International Energy Agency said on Wednesday. Indicator US crude oil %It was down 0.2 to $100.86 per barrel (€86.14).

Investors were also monitoring updates on China’'s imports of Nvidia’'s advanced H200 chips after CEO Jensen Huang’, along with Tesla’'s Elon Musk and Apple’'s Tim Cook, were approved as part of Trump’'s Chinese delegation.

U.S. business leaders from ’ met with Chinese Prime Minister Li Qiang on Thursday afternoon.

On Wednesday, tech stocks spearheaded the rise of Wall Street’. The S&P 500 index rose 0.6 percent to an all-time high of 7.444.25 points, while the Nasdaq composite index rose 1.2 percent to its own record of 26,402.34 points. The Dow Jones industrial average %It declined 0.1 to 49,693.20 points.

U.S. 10-year Treasury bond yield %from 4.47’den %4.46’ya declined, but it was roughly the same as seen before the start of the Iranian war. %3.97’nin remained well above.

A report released on Wednesday showed that U.S. wholesale prices rose in April as a result of the energy shock caused by the Iran war.

The U.S. Senate also approved the replacement of Jerome Powell ’, who Trump ’ has repeatedly criticized for failing to lower interest rates faster or deeper, with Kevin Warsh’ running for Federal Reserve ’.

The US dollar rose from 157.86 Japanese yen to 157.91 Japanese yen. Euro of 1,1711$1,1709 with little drop from ’$Traded from ’ (1€).