AI Boom at Risk: Energy Shocks & Trade Uncertainty

0:00On March 19th, the World Trade Organization's chief economist warns that ongoing war in the Middle East could drive up oil prices long enough to slow. The artificial intelligence boom, AI development guzzles massive amounts of energy, making it vulnerable to these costs. This tops the risks in the group's latest global trade outlook. Global goods trade still grew a solid 4.6% in 2025, thanks to strong exports from Asian countries. That happened despite steep U.S. tariffs hitting decades high levels. Officials now expect trade growth to drop sharply to 1.9% this year. A full year of high energy prices could knock off another 0.5% and threaten food security worldwide. The Gulf region's role as a key supplier of energy and fertilizers means any prolonged disruptions could hit food production hard, worsening existing, export limits. As trade rules face pressure from new tariff waves, these energy shocks highlight how fragile global growth remains in uncertain times.