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TrustFinance Global Insights
Apr 28, 2026
2 min read
16

Iran recently warned that subsea cables in the Strait of Hormuz represent a vulnerable point for the digital economy, raising concerns over potential attacks on critical infrastructure. These fibre-optic networks are essential, carrying around 99% of the world's internet traffic and supporting global telecommunications and financial transactions.
The Strait of Hormuz is a critical chokepoint for both global oil shipments and digital data. Several major cables, including the Asia-Africa-Europe 1 (AAE-1) and the FALCON network, cross the seabed here. These connections are vital for Gulf countries like the UAE and Saudi Arabia, which have invested heavily in diversifying their economies through digital infrastructure and AI, all of which depend on high-speed data transfer.
Any damage to these cables could trigger significant economic fallout, including internet slowdowns, e-commerce disruptions, and delayed financial transactions. While state-sponsored sabotage is a risk, the International Cable Protection Committee (ICPC) reports that 70–80% of cable faults result from accidental human activities like fishing and dragging ship anchors. The risk of such unintentional damage increases significantly during periods of military conflict.
Repairing damaged cables in a conflict zone presents major challenges, from securing permits to ensuring the safety of repair vessels. Experts agree that satellite systems are not a feasible replacement, as they cannot handle the same volume of data traffic. The industry must navigate these heightened risks to maintain global connectivity.
Q: What are the primary risks to undersea cables?
A: While sabotage is a concern, 70-80% of damage is accidentally caused by human activities, primarily fishing trawlers and ship anchors.
Q: Can satellites serve as a viable alternative if cables are damaged?
A: No, satellite systems like Starlink are not considered a scalable replacement as they cannot handle the high volume of traffic that subsea cables manage.
Source: Investing.com

TrustFinance Global Insights
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