Amazon is among major tech firms evaluating potential disruptions to subsea cables in the Strait of Hormuz, which handle up to 20% of global internet and financial data flows, after Iran hinted at imposing transit fees. Alternatives through Red Sea, Oman or Saudi overland routes would demand multibillion-dollar, multiyear investments.
Subsea fiber-optic cables traversing the Strait of Hormuz carry as much as 20% of global internet and financial data traffic, creating a critical chokepoint. Recent Iranian statements on imposing fees have elevated concerns over potential service disruptions that could ripple through cloud computing, e-commerce and financial transactions.
Amazon Web Services relies on this corridor for low-latency connections between Europe, the Middle East and Asia. A disruption could degrade performance or increase latency for enterprise customers, prompting internal reviews of redundancy and resilience strategies.
Major technology firms are exploring new links via the Red Sea, overland fiber through Oman and Saudi Arabia, and additional subsea paths. Each option faces geographic, regulatory and security hurdles that could slow deployment.
Building and securing alternative routes would require multibillion-dollar capital outlays and several years of planning and construction. Project timelines could extend further if regional tensions or permitting issues arise, adding to Amazon’s infrastructure risk premium.
