Microsoft Azure Faces Latency Issues After Red Sea Undersea Cable Cuts
On September 7, 2025, Microsoft acknowledged that its Azure cloud platform users might experience increased latency following multiple undersea fiber optic cable cuts in the Red Sea, as initially reported by Bloomberg.
The company indicated that network traffic transiting through the Middle East or destined for Asia and Europe had been disrupted. Microsoft did not attribute responsibility for the cable cuts or provide details on the cause.
In an official status update, Microsoft stated, “Undersea fiber cuts can take time to repair, as such we will continuously monitor, rebalance, and optimize routing to reduce customer impact in the meantime.” By Saturday evening, the company reported no ongoing Azure issues, signaling that mitigation efforts were effective.
Broader Internet Impact Across Multiple Countries
Beyond Azure, the incident affected wider internet connectivity. NetBlocks, an organization monitoring internet health, confirmed that the subsea cable outages degraded connectivity in several countries, including India and Pakistan, highlighting the regional scope of the disruption.
Context and Regional Tensions
Amid speculation regarding the cause, the Associated Press reported that Yemen’s Houthi rebel group denied involvement in the cable cuts. The cables lie within a region marked by ongoing conflicts, including a campaign by the Houthis in the Red Sea aimed at pressuring Israel, but no direct link to the cable incidents has been established.
Microsoft and other internet infrastructure stakeholders continue to work on repairs and network optimization to restore full service and mitigate user impact during this period.
FinOracleAI — Market View
The temporary disruption to Microsoft Azure due to undersea cable cuts in the Red Sea introduces short-term latency issues that could affect cloud-dependent businesses across Europe, Asia, and the Middle East. While Microsoft’s rapid routing adjustments have mitigated broader service outages, prolonged repair timelines for subsea cables carry risks of extended connectivity challenges. Investors should monitor developments in cable repairs and potential geopolitical escalations in the region that could further impact network stability.
Impact: negative
