Iran demands Big Tech pay fees for undersea Internet cables in Strait of Hormuz

Iran’s Leverage and the Strait of Hormuz

• Multiple comments argue the war has turned a theoretical Iranian threat into a proven ability to close or severely disrupt the Strait, including oil and now undersea cables.
• Others counter that Iran’s leverage is limited: closing the Strait also harms Iran, traffic can partially route around, and regional neighbors may turn more hostile to Tehran.
• Some see Iran’s push to toll cables as information warfare and signaling, not a realistic revenue model.

Cable Fees and the Risk of Physical Attacks

• Many doubt any company will pay Iranian cable fees, especially under US sanctions.
• There’s debate over whether Iran would actually cut or block repairs on undersea cables:
  • One side says it would invite massive US/NATO retaliation and could be done only once.
  • Another side argues the US cannot fully eliminate Iran’s ability to conduct such low-tech attacks, even after heavy bombing.
• The threat itself is seen by some as more powerful than actually cutting cables, given the Internet’s ability to reroute.

US Power, Strategy, and the Iran War

• A large contingent calls the war a massive strategic blunder:
  • Demonstrated US inability to keep the Strait fully open.
  • Boosted Iran’s perceived leverage and harmed allies’ infrastructure.
  • Consumed precision munitions and exposed limits of carrier-centric power.
• Others insist “nothing fundamental” has changed in US hard power; carriers, NATO talk of possible deployments, and prior successful strikes show continued dominance.
• There is sharp disagreement over whether the US now “looks weaker than ever” or is mainly suffering a perception problem amplified by media and politics.

Sanctions, Crypto, and Legal Constraints

• US entities are widely understood to be barred from paying Iran; some note crypto as a technical workaround but still illegal for US persons.
• Comments distinguish between US legal reach and the separate deterrent effect of US sanctions and coercive power on other countries.

Economic and Geopolitical Knock-on Effects

• Discussion covers higher oil prices, fertilizer disruptions (especially for the Global South), and knock-on food inflation.
• Some argue the “petrodollar” is less central today, though others say cumulative erosion of dollar-based settlement still matters.
• A few see Iran’s move as part of a broader undersea “cable war,” with potential Chinese interest in supporting disruptions and accelerating a splinternet and regional, siloed internets.

Big Tech and Rents

• Beyond Iran, some voices welcome more entities extracting rents from Big Tech, arguing these firms were built on undervalued user data and now deserve to be “shaken down,” even if Iran’s method is crude.