An Iranian news agency argued that Tehran should require Alphabet Inc. (NASDAQ: GOOG), Meta Platforms Inc. (NASDAQ: META), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) to obtain permits and pay ongoing fees for subsea internet cables crossing Iranian waters in the Strait of Hormuz.

The Islamic Revolutionary Guard Corps-affiliated Tasnim News Agency published an analysis on Monday stating that Iran should apply its domestic laws to the FALCON and Gulf Bridge International cable systems. The report claimed these systems pass through Iranian territorial waters and described the four companies as owning a large portion of the cables’ capacity. It asserted that these entities should obtain passage permits and pay operating licenses and fees.

Legal basis and cable ownership

Tasnim argued that the 1982 U.N. Convention on the Law of the Sea grants coastal states absolute sovereignty over the seabed within 12 nautical miles. The agency stated that treaty protections for cables do not apply in this zone, leaving room for Iran to charge for safety, environmental, and governance services.

According to TeleGeography data cited in the report, Google has direct ownership or majority stakes in 34 cable systems worldwide, while Meta holds stakes in 20. The report did not mention whether any of the companies have been contacted regarding this proposal.

Regional tensions and infrastructure threats

The proposal follows warnings from Mohsen Rezaei, head of Iran’s Supreme National Security Council. Over the weekend, Rezaei warned that renewed fighting with the U.S. could threaten "cables, data centers, AI facilities and other sites in the region," according to PBS, citing state-run IRNA.

In a post on X on Sunday, Rezaei stated that the U.S. had agreed to some of Iran’s seven conditions for reopening the Strait of Hormuz. However, he noted that Tehran considers Washington’s response "inadequate" and declared there will be "no return to the status quo ante."

Market reaction

On Monday, Alphabet’s Class A stock closed 0.30% higher at $352.72 and gained 0.18% to $353.35 in after-hours trading. Its Class C shares closed 0.32% higher at $348.97 and rose 0.18% to $349.61 in extended trading. Benzinga Edge rankings indicate Google’s Class A stock has a Momentum score in the 83rd percentile and a Growth score in the 88th percentile.

Google, Microsoft, Amazon, and Meta, as well as the Iranian government and the U.S. Department of War, did not immediately respond to requests for comment.

Iran and its Houthi allies launched a series of attacks across the Persian Gulf, striking an oil and chemical tanker near Qatar and damaging a commercial aircraft in Riyadh, intensifying regional security concerns.

The tanker was hit by multiple projectiles late Wednesday, resulting in casualties, according to the Wall Street Journal, citing maritime intelligence firm Vanguard and the U.K. Maritime Trade Operations agency. No group claimed responsibility for the tanker strike, though regional officials told the publication that Iran was likely behind the incident.

Houthis strike Saudi Arabia for third consecutive day

The Houthis followed up with strikes on Thursday in Saudi Arabia, forcing residents to take cover for a third consecutive day. A Saudia Airlines commercial plane was heavily damaged by fire at an airport terminal after being struck by shrapnel from an interception or another projectile at Riyadh's international airport.

The following table summarises the key incidents reported across the region:

Rising attacks threaten key oil routes

The latest incidents add to a week of worsening tensions across major energy corridors. Over the past weekend, Saudi Arabian and Yemeni government forces launched a counteroffensive against the Houthis after the group seized territory weeks earlier. The Houthis aim to retake the Bab al-Mandeb Strait, a vital route for Saudi oil exports, and have struck a Saudi Aramco refinery. The group could also target Saudi Arabia's East-West pipeline, which recently resumed operations.

Shipping risks expanded beyond the Strait of Hormuz. Brett Erickson, Managing Principal at Obsidian Risk Advisors, warned that a reported fire aboard a Marshall Islands-flagged supertanker near Fujairah could threaten ship-to-ship oil transfers in the Gulf of Oman. He said disrupting the network, which is also used by shadow fleets to evade sanctions, could severely affect regional oil flows, stating, "It's game over."

At the time of writing, crude oil prices reflected the heightened uncertainty:

US-Iran tensions rise despite ongoing talks

Donald Trump said the U.S. will not take military action against Iran before the November 3 midterm elections, citing ongoing and productive discussions with Tehran. U.S. officials believe delaying a decision on renewed military action could pressure Iran into making major concessions, particularly on its nuclear program, according to the Wall Street Journal.

Andreas Krieg of King's College London told the publication that Iran is escalating pressure as Washington strengthens its rhetoric and military posture, even as both sides keep diplomacy open. He warned that efforts to gain leverage could trigger a wider war if a serious incident occurs. "This is precisely what makes the moment so dangerous," he said.