{"id":61761,"date":"2026-05-09T13:38:29","date_gmt":"2026-05-09T17:38:29","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/iran-asserts-control-over-hormuz-undersea-cables-as-trump-signals-potential-diplomatic-breakthrough\/61761\/"},"modified":"2026-05-09T13:38:29","modified_gmt":"2026-05-09T17:38:29","slug":"iran-asserts-control-over-hormuz-undersea-cables-as-trump-signals-potential-diplomatic-breakthrough","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/iran-asserts-control-over-hormuz-undersea-cables-as-trump-signals-potential-diplomatic-breakthrough\/61761\/","title":{"rendered":"Iran Asserts Control Over Hormuz Undersea Cables as Trump Signals Potential Diplomatic Breakthrough"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Iran has moved to take full control of all seven undersea internet cables passing through the Strait of Hormuz<\/strong>, requiring foreign operators to obtain Iranian permits and pay transit fees.<\/li>\n<li><strong>President Donald Trump expects a response from Tehran &quot;very soon,&quot;<\/strong> stating in an interview with French media that Iran &quot;really wants to reach an agreement&quot; to end the current conflict.<\/li>\n<li><strong>Bahrain has dismantled a clandestine organization linked to the Iranian Revolutionary Guard Corps (IRGC)<\/strong>, leading to the arrest of 41 suspects and drawing immediate diplomatic support from Egypt and Lebanon.<\/li>\n<li><strong>The IRGC has warned it could target submarine infrastructure<\/strong> used by Gulf states for banking and cloud services, threatening the security of an estimated <strong>$10 trillion in daily global financial transactions<\/strong>.<\/li>\n<li><strong>Military tensions remain high on the Israel-Lebanon border<\/strong>, with Hezbollah launching rockets into the Upper Galilee and Israeli forces conducting retaliatory raids on the town of Ansaar.<\/li>\n<\/ul>\n<h2>Iran Weaponizes Digital Infrastructure in the Strait of Hormuz<\/h2>\n<p>In a significant escalation of regional brinkmanship, Iran has moved to assert full control over the <strong>seven undersea internet cables<\/strong> that transit the <strong>Strait of Hormuz<\/strong>. According to reports from the Fars news agency, foreign operators may now be forced to obtain <strong>Iranian permits, pay transit fees, and adhere to Iranian law<\/strong> to maintain data flows. These cables represent a critical &quot;digital artery,&quot; carrying a massive share of global data traffic between <strong>Europe, the Gulf, and Asia<\/strong>.<\/p>\n<p>The <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> has previously issued warnings that it could target submarine cable infrastructure used by neighboring Gulf states for <strong>internet, banking, and cloud services<\/strong>. This move places significant pressure on global tech giants like Amazon.com (<a href=\"\/stock\/AMZN\">AMZN<\/a>), Alphabet Inc. (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>), Meta Platforms (<a href=\"\/stock\/META\">META<\/a>), and Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>), which have invested billions in regional data hubs. <em>Analysts suggest that Tehran is leveraging this infrastructure as a new bargaining chip to counter U.S.-led economic and military pressure.<\/em><\/p>\n<h2>Trump Signals Imminent Diplomatic Response<\/h2>\n<p>Despite the rising tensions, <strong>President Donald Trump<\/strong> expressed optimism regarding a potential peace deal during interviews with the French <strong>LC1<\/strong> and <strong>LCJ<\/strong> channels. Trump stated that he expects a response from Iran &quot;very soon&quot; and characterized the Iranian leadership as being highly motivated to reach an agreement. &quot;Iran really wants to reach an agreement,&quot; Trump noted, suggesting that the two-month-old conflict may be nearing a diplomatic turning point.<\/p>\n<p>However, the path to a deal remains fraught with obstacles. <strong>Iranian Foreign Minister Seyyed Abbas Araghchi<\/strong> countered that diplomacy can only advance if &quot;aggression stops and unreasonable demands are dropped.&quot; <em>The contrast between Trump\u2019s optimism and Tehran\u2019s rigid conditions reflects the delicate nature of the ongoing mediation efforts led by Pakistan.<\/em><\/p>\n<h2>Regional Alignment Against IRGC Influence<\/h2>\n<p>Tensions between Iran and its neighbors spiked following <strong>Bahrain&#39;s<\/strong> announcement that it had uncovered a large organization linked to the <strong>IRGC<\/strong> that threatened its national security. In response, <strong>Egypt<\/strong> and <strong>Lebanon<\/strong> issued statements of solidarity with the Kingdom of Bahrain. The <strong>Egyptian Foreign Ministry<\/strong> emphasized that Bahrain&#39;s security is an &quot;integral part of Egyptian national security,&quot; supporting all measures taken by Manama to preserve internal stability.<\/p>\n<p>The situation was further inflamed by a <strong>senior Iranian lawmaker<\/strong> who warned Bahrain of &quot;severe consequences&quot; for its support of a <strong>U.S.-led UN resolution<\/strong> regarding the Strait of Hormuz. This diplomatic friction occurs as the region remains on edge following the Feb. 28 strikes and the subsequent April ceasefire, which has seen frequent violations.<\/p>\n<h2>Israel-Hezbollah Skirmishes Continue<\/h2>\n<p>On the northern front, the <strong>Israeli Army<\/strong> reported that a rocket launched from <strong>Lebanon<\/strong> fell in an open area in the <strong>Upper Galilee<\/strong> today. While no casualties or damage were reported, <strong>Israeli Channel 12<\/strong> confirmed the projectile was fired by <strong>Hezbollah<\/strong>. In retaliation, an <strong>Israeli raid<\/strong> targeted the town of <strong>Ansaar<\/strong> in southern Lebanon, continuing a pattern of tit-for-tat strikes that have persisted despite broader ceasefire talks.<\/p>\n<p><em>Market observers remain cautious, as the combination of digital infrastructure threats and active military skirmishes continues to weigh on regional stability.<\/em> The potential for a &quot;cable cut&quot; or a disruption in the <strong>Strait of Hormuz<\/strong> remains a primary concern for the global financial sector, given the reliance on these subsea links for real-time trading and cloud computing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Iran has moved to take full control of all seven undersea internet cables passing through the Strait of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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