Prolonged high oil prices could ‘crimp’ AI boom, WTO warns

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The World Trade Organization (WTO) warns that prolonged high oil prices, potentially stemming from the Middle East conflict, could hinder the AI boom. The WTO's Global Trade Outlook identifies this energy cost impact as a major risk to the global economy. According to the WTO chief economist, the energy-intensive nature of AI investment, heavily concentrated in large firms, makes it vulnerable to sustained elevated energy prices. The WTO highlights AI's significant contribution to North American investment growth, offsetting previous trade challenges. While global goods trade expanded in 2025, a prolonged energy shock could further slow growth and jeopardize food security due to the Gulf region's role in energy and fertilizer exports.
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