Iran considers fees on undersea internet cables in strait of hormuz

Iran is weighing a proposal to charge fees for undersea internet cables passing through the Strait of Hormuz. The plan could also limit cable repairs to Iranian companies only.

The move targets vital links that carry global data traffic, including services such as WhatsApp chats, Instagram reels, Amazon deliveries and Netflix streams. Officials are discussing the fees amid ongoing tensions with the United States and Israel, where a fragile ceasefire currently holds.

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Illustration of cargo ships in the Strait of Hormuz highlighting a new 20% US transit fee.
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Trump says U.S. will charge 20 pct fee on cargo through Strait of Hormuz

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U.S. President Donald Trump said Monday the United States will charge a 20 percent fee on all cargo shipped through the Strait of Hormuz.

The United States warned shipping companies they could face sanctions for payments to Iran to pass through the Strait of Hormuz. The alert heightens pressure amid the US-Iran standoff over control of the vital waterway. South Korea's foreign minister urged safe navigation in a call with his Iranian counterpart.

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President Donald Trump said on Monday that the United States would become the “guardian” of the Strait of Hormuz and seek a 20% reimbursement fee on cargo moving through the waterway, but he reversed course the next day and said the fee would be replaced by trade and investment deals with Gulf partners.

U.S. military forces struck two Iranian oil tankers Friday in the Strait of Hormuz after exchanging fire with Iranian forces overnight. The attacks came amid efforts to enforce a blockade and followed reported Iranian missile and drone strikes on the United Arab Emirates.

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The U.S. military sank six Iranian small boats and defeated cruise missile and drone attacks in the Strait of Hormuz on Monday, allowing two American-flagged merchant ships to complete a safe transit under President Trump's 'Project Freedom' initiative. Separate incidents included an explosion on a South Korean-operated vessel and Iranian missile and drone strikes on the UAE—the first since the early April ceasefire—with the UAE reporting interceptions and casualties.

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