Middle East Conflict Largest Energy Price Rise In 4 Years – World Bank
The World Bank says energy prices are projected to jump by 24 per cent in 2026, as the Middle East war disrupts global oil and commodity markets.
In its latest Commodity Markets Outlook released on Tuesday and a copy made available to the News Agency of Nigeria (NAN) in Abuja, the World Bank says global energy prices are under severe pressure amid current conflicts.
According to the bank attacks on energy infrastructure and shipping in the Strait of Hormuz, which handles about 35 per cent of global seaborne crude oil, triggered the largest oil supply shock on record.
Global oil supply fell by about 10 million barrels per day, pushing Brent oil prices more than 50 per cent above the start-of-year level. Brent is forecast to average 86 dollars per barrel in 2026.
Fertiliser costs are expected to rise 31 per cent, driven by a 60 per cent surge in urea prices, threatening crop yields and farmer incomes.
“If the conflict continues, up to 45 million more people could face acute food insecurity,” the report warned, citing the World Food Programme.
Base and precious metals, including aluminum, copper, tin, and gold, are also projected to reach record highs, reflecting demand from electric vehicles, renewable energy, and data centre industries.
Rising commodity prices will drive inflation and slow growth worldwide, with developing economies projected to grow 3.6 per cent and inflation at 5.1 per cent in 2026.
World Bank Chief Economist, Indermit Gill, said the war is hitting the global economy in waves, first energy, then food, and finally inflation.
While Deputy Chief Economist, Ayhan Kose urged governments to support vulnerable households with targeted, temporary measures.
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