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Hormuz Internet Crisis: Would India’s Stocks, Banks, ATMs, UPI, Trains, And Netbanking Collapse If Iran Cuts The Cables?

Hormuz Internet Crisis: Have you ever imagined a day when you would wake up in a world without Google, UPI, Wi-Fi and mobile internet? What if you are unable to withdraw from banks and ATMs, pay utility bills or book your train, movie tickets?

Hormuz Internet Crisis: Have you ever imagined a day when you would wake up in a world without Google, UPI, Wi-Fi and mobile internet? What if you are unable to withdraw from banks and ATMs, pay utility bills or book your train, movie tickets? This could possibly be the Hormuz Internet Crisis if Iran decides to cut down undersea cables in the Strait of Hormuz to stop the financial and economic heart of countries such as India. With tensions in the Middle East at their boiling point, would this be a possibility waiting to happen?

Hormuz Internet Crisis-The Hormuz Chokepoint

The Strait of Hormuz, which is nestled between Iran and Oman, is not just oil’s artery but also the internet’s jugular. The Strait includes 16 major undersea cables, including giants such as FLAG, EIG and SEA-ME-WE 3/4/5, ferrying 25 percent of global data traffic and one-third of India’s data traffic.

Now imagine this, Iran’s IRGC Navy lurks like a predator that is armed with cable-paring minisubs, seabed mines and drone swarms. In 2024, Houthi rebels severed cables in the Red Sea to black out 40 percent of Saudi bandwidth. But could Iran cutting down cables in the Hormuz decapitate India’s digital economy? Let’s find out.

Stocks: When the Market Mood Sours

Dalal Street thrives on split-second traders. Investors and traders buy low, sell high, all online. If internet connectivity is gone, stock markets would crumble.

Banks, ATMs, And App Access Curtailed

With no internet, you could not access UPI payments, ATM withdrawals or quick netbanking payments. Salary payments to employees suddenly stop and you could not make payments to your favourite tea, grocery or restaurant vendor?

UPI: The Everyday Lifeline That Stutters

The magic of UPI could crumble if cables are cut. Cab and bike drivers would wait unpaid, no payments at the vegetable carts and shops turning to cash only.

Trains: Journeys On Hold

IRCTC Bookings are known to be a pain for many of us but what if you just could not book a ticket? Migrant workers, families, students and daily commuters would have to stand in long, endless ticket booking lines if internet connectivity is curtailed. Offline bookings would be even a challenging task for Indian Railways.

Our connected world rests on fragile strings but what if these strings are no more there?

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