The conflict in the Middle East could halt the development of AI
This is reported by The Guardian, citing the World Trade Organisation (WTO).
It is noted that the conflict between the US and Iran is affecting the cost of energy and nitrogen fertilisers, which poses a major risk to AI development. WTO experts forecast a sharp slowdown in global trade in 2026 – to 1.9% – even if the energy market stabilises.
A prolonged price shock in the oil and gas market could cost the global economy a further 0.5% of growth. Such a scenario not only threatens food security due to a shortage of nitrogen fertilisers, but also creates a critical barrier for the energy-intensive artificial intelligence sector.
High energy costs could halt the technological boom, as the costs of maintaining AI infrastructure make further expansion of the sector financially risky.
In the first three quarters of 2025, the artificial intelligence sector accounted for 70% of total investment growth in North America. By way of comparison: on the eve of the 2008 financial crisis, the share of real estate in investment growth was just 30%.
