Iran’s security chief Mohsen Rezaei warned in mid-October 2026 that renewed fighting with the United States could lead Tehran or its proxies to target undersea internet cables, data centers, and AI facilities near the Strait of Hormuz. The statement came amid stalled talks over reopening the strait, sanctions relief, and a proposed ceasefire framework, with Iran describing the U.S. response as inadequate. Multiple submarine cables pass through the narrow waterway, carrying substantial regional data traffic and serving as a strategic chokepoint. Trader consensus on related Polymarket contracts remains low, with implied probabilities at 6 percent by late October and 14 percent by year-end, reflecting expectations that escalation to actual cable damage is unlikely without major diplomatic breakdown. Ongoing naval warnings and infrastructure mapping reports continue to signal deterrence rather than imminent action.