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

Industry with business model not yet firmly established and investments financed by huge debts is particularly at risk 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. Many oil-importing economies, especially in the global south, are having to contemplate outright shortages of oil and its products. Shops in Egypt face curfews, Indonesia has imposed work from home Fridays and the Philippines has declared a national energy emergency. As a wealthy oil exporter, the US can largely dodge these concerns. However, as the rising cost of filling up US cars illustrates, it cannot completely avoid the global rise in energy costs – which many analysts now believe will persist for months even if the strait reopens within days. As a result, many companies will be looking anxiously at their cashflow projections. But for a uniquely energy-hungry indust