Iran Threatens Undersea Internet Cables in Hormuz and Red Sea Corridors

TLDR:

• Iran’s IRGC warned on March 28 that critical undersea cable infrastructure in Hormuz will not be spared from attack.

• Cables like FALCON, AAE-1, and 2Africa Pearls carry nearly all global internet traffic through contested waterways.

• Google and Meta activated contingency rerouting plans after the threat, raising costs across cable insurance markets.

• Starlink’s 9,500-satellite LEO network is gaining traction on rerouted tankers, with SpaceX eyeing a $1.75T IPO valuation.

Undersea internet cables connecting Asia, Europe, the Middle East, and Africa face serious threats. Iran’s Islamic Revolutionary Guard Corps issued a stark warning on March 28.

The statement said critical infrastructure in the Hormuz and Red Sea corridors would not be spared. The cables at risk carry nearly all global internet traffic.

No cable has been cut yet, but Google and Meta have already activated contingency rerouting plans in response.

Cable Networks at the Center of the Standoff

The cables at risk include FALCON, Gulf Bridge International, Europe India Gateway, SEA-ME-WE 6, AAE-1, and FLAG. These run through the Hormuz corridor.

In the Red Sea, EIG, AAE-1, Seacom, SMW-4, SMW-5, SMW-6, IMEWE, and 2Africa Pearls are also exposed. Together, they form the backbone of global digital commerce.

Analyst Shanaka Anslem Perera noted the full scope of what flows through these cables. “Your bank transfers. Your stock trades. Your cloud computing,” he wrote.

The data connects every financial market on earth to every other. Past events show how quickly disruptions can escalate.

In 2008, eight cables were severed off the Egyptian coast. Between 70 and 80 percent of Middle East-to-Europe traffic went dark after that.

Repairs stretched from three to eight weeks. In 2024, Houthi-related anchor drag damaged four cables in the Red Sea, with repairs lasting months.

Both past incidents were likely accidental. A deliberate, state-sponsored cut has never been carried out. Iran’s own connectivity runs through these same cables.

Any confirmed attack would also trigger immediate naval retaliation from the US, UK, and French fleets already in the region.

Satellite Connectivity Gains Ground as Threat Persists

The threat alone is creating real friction in global financial systems. Cable operators are rerouting traffic, and that process carries real costs. Insurance pricing on submarine cable infrastructure is also shifting.

Institutions relying on sub-40-millisecond latency between Asian and European markets are now running new contingency scenarios.

Starlink’s low-earth orbit constellation of over 9,500 satellites is emerging as a direct alternative. The service delivers broadband through phased-array terminals that electronically steer beams to counter jamming.

Iran has used GPS spoofing and radio-frequency noise against Starlink since January. Packet loss spiked to between 30 and 80 percent during those episodes.

Starlink responded with firmware updates and beamforming adjustments. Packet loss then dropped back to workable levels.

Starlink maritime terminals are already active on tankers rerouting around the Hormuz corridor. Speeds range from 100 to 220 megabits per second at low latency.

SpaceX is reportedly preparing an IPO prospectus this week, per Bloomberg, Reuters, and The Information. The target valuation sits between $1.5 and $1.75 trillion.

The filing arrives at a moment when its service directly addresses a gap exposed by geopolitical tension. The Strait of Hormuz carries oil, gas, helium, and a large share of global internet traffic. Markets have not yet fully priced this convergence.

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