Iran Threatens Undersea Cables

Oil markets jolted as Brent surged past $117 a barrel—its highest close since April—and tanker freight rates skyrocketed sevenfold year-on-year. The trigger: a sharp escalation in the Gulf, with Iran’s Revolutionary Guard and Yemen’s Houthis hitting ships and critical infrastructure, including airports and pipelines in Saudi Arabia. Civilian casualties and new Houthi territorial gains near vital chokepoints amplified the stakes, sending the Dow tumbling 652 points on Friday. With nearly one-sixth of regional tankers now tied up in ship-to-ship transfers to dodge danger zones, shipping costs have ballooned to over $20 a barrel, factoring in war-risk premiums and rerouting expenses.

But even as U.S. officials argue “97% safe transit” through the Strait of Hormuz, markets aren’t buying it—because price is set by the riskiest, most costly detours. The threat now isn’t just oil: Iran has signaled undersea cables and AI data centers as new targets, raising the risk of digital and financial disruptions. The U.S. is moving three carrier strike groups to the region and pulling diplomats from Saudi Arabia, while Washington and Israel weigh potential strikes on Iran after November 3. If pressure continues mounting at Bab el‑Mandeb and Hormuz, even backup supply routes may collapse—meaning higher prices are here to stay, and the risk of regional conflict is rising.

Featuring reporting from Arise News, BigGo Finance, ET Now, Zee Business, Business Insider, Al Jazeera, News24, NewsCord, Kurdistan24, and The Sunday Guardian.

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