Iran has threatened to target critical digital infrastructure across the Middle East if fighting with the US intensifies, as disagreements over a proposed peace deal and rising risks to shipping through the Strait of Hormuz threaten to derail diplomatic efforts.

Iran Calls US Response to Peace Proposal 'Insufficient'

Mohsen Rezaei, head of Iran's Supreme National Security Council and a former Islamic Revolutionary Guard Corps commander, said Tehran remains dissatisfied with Washington's latest response to its proposal to end the war and restore shipping through the Strait of Hormuz, PBS reported over the weekend, citing state-run IRNA.

Rezaei described the US response as "insufficient," adding that Washington had accepted some of Iran's seven conditions but had yet to clarify others.

He said Iran was no longer responding to the US and that Washington needed to resolve outstanding issues, without specifying what they were.

Iran presented a revised proposal during last month's annual UN gathering of world leaders. The plan resembled a memorandum of understanding Washington and Tehran signed in June that collapsed days later.

Although the latest proposal was rejected, the two sides have reportedly continued communicating through mediators.

Iran Threatens Regional AI Infrastructure, Data Centers

Rezaei warned that renewed intense fighting could put critical technology infrastructure at risk, including "cables, data centers, AI facilities and other sites in the region."

The threat raises concerns about potential disruptions to telecommunications networks, cloud computing services and artificial intelligence operations if the conflict escalates.

Strait of Hormuz Shipping Risks Rise

Meanwhile, Iran's Revolutionary Guard navy warned that ships switching off their navigation and identification systems while transiting the Strait of Hormuz would be considered "hostile," IRNA reported.

The warning comes as attacks on vessels passing through the strategic waterway have increased following the rejection of Iran's proposal. One such attack was reported Sunday.

Earlier this month, Rezaei warned that Iran's economy was facing a deepening crisis as the rial weakened under sanctions and a US naval blockade disrupted oil shipments and trade.

Washington has also restricted most civilian air travel to and from Iran, further isolating the country.

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