Can Iran Control Internet Cables in the Gulf? || Peter Zeihan

Zeihan on Geopolitics
Zeihan on GeopoliticsMay 29, 2026

Why It Matters

Control over Gulf data cables threatens global internet reliability and could force a costly migration to satellite networks, reshaping geopolitical and commercial data strategies.

Key Takeaways

  • Iran threatens to levy fees on Gulf data cable traffic.
  • Gulf states' cables rely on a single Hormuz crossing, creating vulnerability.
  • Physical submarine cables can be severed quickly, undermining data continuity.
  • Satellite constellations like Starlink become fallback but raise sovereignty issues.
  • Regional rivalries prevent alternative routes, amplifying Iran’s leverage.

Summary

The video examines Iran’s push to assert control over undersea data cables that traverse the Strait of Hormuz, arguing that Tehran could charge a transit fee for any internet traffic entering or leaving the Persian Gulf.

Zeihan notes that while thousands of submarine cables link continents, the Gulf’s major routes converge on a single chokepoint. Countries such as the UAE, Saudi Arabia, Kuwait, Bahrain and Oman lack alternative inland pathways, making their digital infrastructure dependent on a vulnerable Hormuz crossing. A single cut could disrupt more data than the entire telephone network of two decades ago.

He quotes Iran’s claim that it “should be able to charge a transit fee,” and points out that regional animosities prevent shared infrastructure. Zeihan also highlights that satellites—particularly SpaceX’s Starlink constellation—are the only viable backup, but they raise new questions of space sovereignty and orbital crowding.

If Iran follows through, global businesses could face sudden latency spikes, rerouting costs, or outright outages, accelerating a shift toward satellite‑based connectivity and prompting governments to reconsider the security of critical digital arteries.

Original Description

We've previously discussed the vulnerabilities of global internet infrastructure, but today we'll focus on subsea data cables in the Persian Gulf.
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