Explainer-The Hormuz Digital Chokepoint: How Does the Iran War Threaten Subsea Cables?

The Strait of Hormuz is best known as a chokepoint for oil tankers, but the Iran war has exposed a less visible vulnerability: the subsea internet cables that carry the vast majority of digital communications between Europe, the Middle East, and Asia.

At least 16 major submarine cable systems pass through or near the Strait of Hormuz and the broader Persian Gulf region. These cables carry an estimated 30 percent of global internet traffic, including financial transactions, cloud computing data, and military communications. A disruption to even a few of these systems could cause significant latency, data loss, and connectivity outages across multiple continents.

The threat is not hypothetical. Subsea cables have been damaged accidentally by ship anchors and fishing equipment, and deliberately in conflicts around the world. Repair operations in a war zone would be extremely dangerous and time-consuming — specialized cable repair ships would need naval escort, and the diplomatic coordination required to access contested waters could take weeks or months.

The Iran war has already prompted several technology companies and telecom providers to explore alternative routing options. Satellite internet services like Starlink can provide backup connectivity, but their bandwidth is a fraction of what submarine cables deliver. Terrestrial routes through Turkey and Central Asia exist but add significant latency and capacity constraints.

For financial markets, the risk is particularly acute. High-frequency trading and international settlement systems depend on low-latency connections that only submarine cables can provide. A major cable disruption could force exchanges to halt trading or operate with significant delays.

What This Means For You: Your internet connection is more fragile than you think. Most of the world's data travels through a handful of physical cables lying on the ocean floor, and the Strait of Hormuz is where several of the most important ones converge. If the conflict escalates to include subsea infrastructure, expect degraded internet performance, slower cloud services, and potential disruptions to financial systems. Businesses with critical connectivity needs should review their redundancy plans now.