diff --git a/environment.boot b/environment.boot
index 2387785fd4..ff382eeb8a 100644
--- a/environment.boot
+++ b/environment.boot
@@ -1,4 +1,4 @@
 azul_python_version=3.11.10
 azul_python_image=docker.io/library/python@sha256:13b5591078b6450547762ed1faec89f9934d69d5cffc746f8cdbc1d2ee5b44d4
 azul_docker_version=27.2.1
-azul_terraform_version=1.9.7
+azul_terraform_version=1.9.8
diff --git a/environment.py b/environment.py
index ca4fa7add9..ed43a3462f 100644
--- a/environment.py
+++ b/environment.py
@@ -261,7 +261,7 @@ def env() -> Mapping[str, Optional[str]]:
         # Modifying this variable requires running `make environment.boot` and
         # committing the resulting changes.
         #
-        'azul_terraform_version': '1.9.7',
+        'azul_terraform_version': '1.9.8',
 
         # A dictionary mapping the short name of each Docker image used in Azul
         # to its fully qualified name. Note that a change to any of the image
diff --git a/terraform/_schema.json.gz b/terraform/_schema.json.gz
index 0331f3f97a..1ac33c8381 100644
Binary files a/terraform/_schema.json.gz and b/terraform/_schema.json.gz differ