The Iran versus US and Israel war has drawn fresh attention to the Strait of Hormuz, not just as a vital oil artery, but as a potential “digital chokepoint” that could disrupt global internet infrastructure. Iran last week warned that submarine cables running through the strait remain exposed, raising concerns about risks to critical digital systems linking Asia, the Gulf and Europe, news agency Reuters reported.
Subsea fibre-optic cables carry roughly 99 per cent of global internet traffic, according to the International Telecommunication Union (ITU), making them essential for telecommunications, cloud services and financial systems.
“Damaged cables mean the internet slowing down or outages, e-commerce disruptions, delayed financial transactions … and economic fallout from all of these disruptions,” geopolitical analyst Masha Kotkin was quoted as saying.
Key global data routes pass through the Gulf
Several major cable systems pass through the Strait of Hormuz, including:
- Asia-Africa-Europe 1 (AAE-1) linking Southeast Asia to Europe.
- FALCON network connecting India and Sri Lanka to the Gulf and African markets.
- Gulf Bridge International system linking Gulf countries, including Iran.
The FALCON network, in particular, directly connects India (via Mumbai) to Gulf countries, acting as a major route for enterprise data, telecom traffic and business connectivity with West Asia. Any disruption could slow connectivity, hit financial systems and impact India’s IT-driven economy.
These cables underpin data flows for countries investing heavily in AI and digital infrastructure, particularly the UAE and Saudi Arabia.
Iran war raises risks, direct and indirect
While submarine cables have not yet been directly hit, experts told Reuters that the risks are rising as the conflict nears two months.
Story continues below this ad
Most cable faults, around 70–80 per cent, are caused by accidental human activity such as fishing or ship anchors. However, military operations increase the chances of accidental damage, especially from drifting vessels.
A similar incident occurred in 2024, when a vessel attacked by Iran-aligned Houthis severed Red Sea cables with its anchor.
“In a situation of active military operations, the risk of unintentional damage increases,” Kotkin said.
Repairs could face major delays
Even if cables are damaged, fixing them in a conflict zone is far from straightforward, according to the report.
Repair operations may be delayed due to:
Story continues below this ad
- Security risks and naval activity.
- Insurance constraints for repair vessels.
- Delays in obtaining permits for territorial waters.
“Often one of the biggest problems… is getting permits into the waters where the damage is,” telecom analyst Alan Mauldin told Reuters.
Post-conflict, companies may also need to resurvey seabeds to avoid hazards from sunken vessels or debris.
No real alternative to subsea cables
According to experts, there is no scalable replacement for subsea cables. Satellite networks, including low-Earth orbit systems like Starlink, cannot handle comparable data volumes and are significantly more expensive.
“It’s not as though you could just switch to satellite. That’s not an alternative,” Mauldin said.
Story continues below this ad
India’s aluminium industry faces supply shock
The West Asia conflict is also disrupting global trade flows, hitting India’s aluminium sector. India produces nearly half of its 4.2 million metric tonnes of aluminium via recycled scrap, much of it imported from the EU, the US and the Middle East, which accounts for about 30 per cent of supplies.
Supply disruptions have led to:
- Production cuts of 20–40 per cent.
- Scrap prices are jumping nearly 30 per cent.
- Severe inventory shortages.
“There is a hand-to-mouth situation in scrap plants because of shortages and price increase,” said Sandeep Jain of Sunalco Alloys.
Impact likely to hit car buyers
The supply crunch is expected to ripple through India’s auto sector, which consumes about 60 per cent of secondary aluminium.
Major automakers such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Hyundai Motor India may face rising input costs, Reuters reported.
Story continues below this ad
“Prices have been impacted, which will eventually be passed on to carmakers and ultimately, the buyers,” said Dhawal Shah of Metco Ventures.
