Middle East conflict stalls global trade

(Patria) - The war against Iran and escalating tensions in the Middle East have stalled global trade, with higher transportation costs, notes the World Trade Organization (WTO).

Commodity exchange is expected to slow down in 2026 to 1.9 percent, reflecting a normalization after last year's 4.6 percent jump fueled by accelerated orders as companies sought to preempt announced higher US tariffs.

In October, the WTO had estimated that commodity exchange would grow by 2.4 percent in 2025.

In addition to the wave of orders, consumption of artificial intelligence also boosted exchange in 2025, the WTO determined.

Trade in goods enabling the use of artificial intelligence jumped by as much as $4.18 trillion last year, corresponding to a rate of 21.9 percent. These goods accounted for as much as 42 percent of the increase in the value of global trade, although they represented only one-sixth of the exchange.

The WTO notes that products such as chips, semiconductors, and data transmission equipment were exempted from most new tariffs.