Former US energy envoy Amos Hochstein recently highlighted a dual-pronged crisis impacting the global energy landscape: geopolitical instability in the Strait of Hormuz and the surging power requirements of artificial intelligence. Speaking at Adipec 2026, Hochstein noted that the ongoing regional conflict has caused logistics and insurance premiums to balloon, now consuming over 30 percent of a barrel of oil’s total cost—a stark contrast to the 5 percent seen before the hostilities began. Even though oil shipments continue to flow through the strait, he cautioned that these elevated overheads and the need for enhanced security measures prove that the industry is far from returning to "business as usual."

Beyond logistics, the rapid scaling of AI is placing unprecedented strain on national power grids, creating a bottleneck that threatens to outpace current delivery capabilities. Hochstein warned that if data center expansion leads to soaring utility bills, public support for AI could quickly erode. To navigate these challenges, he urged governments to step in with proactive funding for energy infrastructure, such as advanced nuclear technology and improved interconnections. By derisking these critical projects, officials can better attract private investment, ensuring that the necessary physical security and operational resilience are in place to support both traditional energy needs and the high-tech future.