Cheap cloud was built for stability, but that world is changing

The Iran war is not making cloud suddenly expensive. It is exposing how cloud economics was always downstream from energy markets, and Europe is structurally exposed.

The current conflict in the Middle East is no longer contained to the region. Its effects are beginning to ripple into economies still recovering from the 2022 energy crisis, raising concerns across industries whose growth depends on macroeconomic stability, including tech.

The Iran war is not making cloud suddenly expensive, but it is exposing how cloud economics relies on energy stability, geopolitical predictability, and global infrastructure continuity. Cloud pricing is downstream from energy markets, and Europe is structurally exposed due to its reliance on imported energy.

The near-total closure of the Strait of Hormuz, a key artery for roughly a fifth of the world’s oil and liquefied gas traffic, threatens supply chains at a foundational level. The consequences are upward pressure on fuel ...