Iran Threatens Undersea Cables That Connect Gulf AI Growth

Iran is considering seizing seven undersea cables through the Strait of Hormuz, which carries roughly 95 percent of data traffic from Gulf nations. Saudi Arabia and the UAE have invested heavily in AI compute capacity, positioning themselves as service providers. Control of these cables would create a critical vulnerability for financial systems, healthcare, energy, and government—sectors increasingly dependent on partnerships like Microsoft's with UAE-based G42.