Rising global borrowing costs are being fueled by two seemingly unrelated forces: record‑setting AI investment budgets and the persistent conflict in Iran. Multinational tech firms are pouring billions into AI research and infrastructure, driving up demand for capital and tightening credit markets. Meanwhile, the war in Iran has heightened geopolitical risk, prompting investors to demand higher yields on sovereign debt. Together, these dynamics are pushing interest rates higher worldwide, affecting everything from corporate financing to consumer mortgages.
Huge AI spending plans and the ongoing war in Iran are driving up borrowing costs around the world.
