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The Guardian - UK
The Guardian - UK
Business
Heather Stewart

Higher energy costs from Iran war could threaten fragile economics of AI boom

Iran United States Economy Donald Trump Bank of England Quinn Emanuel
An artificial intelligence robot controlling a futuristic data screen
The AI industry is energy intensive. Photograph: Yuichiro Chino/Getty Images

Donald Trump’s most immediate concern in demanding Iran reopen the strait of Hormuz may be rocketing US gasoline prices, but if the conflict drags on, higher energy costs will be felt far beyond the pumps.

Systemically higher power prices and fractured supply chains will squeeze industries and consumers worldwide. For the US, one consequence may be to threaten the fragile economics of the AI boom.

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