Iran Seeks to Monetize the Strait of Hormuz with Cable Fees, Toll Regime and Bitcoin-Based Insurance

The Islamic Revolutionary Guard Corps (IRGC) announced “access fees” on undersea internet cables crossing Strait of Hormuz, naming Meta, Google, Amazon and Microsoft as licence-fee targets. Persian Gulf Strait Authority (PGSA) proposes a toll of up to $2 million per vessel. The proposals follow the Feb 28 U.S.–Israel blockade that halted traffic. Iran launched PGSA on X, issuing “real-time updates,” and drafted Bitcoin-based insurance product called “Hormuz Safe,” with payments to be made in Bitcoin.

Al Jazeera (website)

Tasnim projects up to €13 billion from cable fees, while J.P. Morgan estimates $70-90 billion if a full toll regime applies. The “Hormuz Safe” insurance model alone aims to raise over $10 billion. Analysts differ: the IPCC expects minimal disruption, while others warn broader economic effects on Europe’s digital economy. UNCLOS applicability is unclear because Iran has not ratified it.

“Hormuz Safe”: Iran Plans Bitcoin-Based Insurance Scheme to Control Contested Strait

European operators of the AAE1 and PEARLS/2Africa cables—managed by Italy’s Retelit and Greece’s OTEGLOBE—depend on low-latency links for banking, cloud services and energy trading. Analysts warn fees could raise connectivity costs, but the International Cable Protection Committee notes the cables carry under 1 % of global bandwidth and redundancy limits disruption.

Euronews

U.S. Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi said “no country or organization can be allowed to charge tolls to pass through international waterways.” State Department spokesperson Tommy Pigott warned such fees would breach UNCLOS. UN Secretary-General Antonio Guterres called for strait’s immediate reopening without tolls.

Newsweek

The IPCC notes the strait’s cables represent under 1 % of bandwidth, with redundancy reducing fault impact. Legal scholars note Iran signed UNCLOS in 1982 but never ratified it, making the fee plan an overreach of authority. Doug Madory says extracting fees from firms is impractical because most cables do not terminate in Iran.

The Guardian

• “We will impose fees on internet cables.” — Ebrahim Zolfaghari, IRGC spokesperson

The Register UK

• “European financial institutions, cloud providers, telecommunications firms, and multinational corporations rely heavily on low-latency submarine cable networks for banking transactions, digital services, energy trading, and industrial operations,” — Meredith Primrose Jones, Leidra geopolitics and security head

Euronews

• “Bandwidth traversing the Strait of Hormuz accounts for less than 1% of international bandwidth globally” — International Cable Protection Committee (IPCC)

Euronews

• “no country or organization can be allowed to charge tolls to pass through international waterways.” — Tommy Pigott, U.S. State Department spokesperson

Newsweek

Iran plans to publish detailed PGSA procedures and activate the “Hormuz Safe” platform within weeks. The United States has signaled intent to sanction entities that pay for passage; China has reiterated opposition to any tolls. European stakeholders monitor cost implications for digital supply chains while diplomatic talks remain stalled.

The Maritime Executive