World Bank Warns Middle East Conflict Driving Surge in Global Commodity Prices

The World Bank Group has warned that the ongoing Middle East conflict is sharply increasing global commodity prices and disrupting supply chains, creating new economic challenges for emerging markets.

The institution said crude oil prices have risen by nearly 40 percent between February and March, while liquefied natural gas shipments to Asia have increased by almost two-thirds. Prices of nitrogen-based fertilizers also climbed by nearly 50 percent during March, reflecting growing supply risks.

According to the World Bank Group, disruptions in shipping routes are driving up logistics costs and affecting the availability of key inputs, with the impact spreading beyond energy into agriculture and food systems.

The organization said it is in direct contact with affected countries and is closely monitoring global market developments as the situation evolves.

To respond to the crisis, the World Bank Group said it is preparing to provide financial support, policy guidance, and private sector assistance. This includes liquidity support, trade finance, and working capital for businesses, as well as funding tools aimed at stabilizing economies.

Officials noted that while immediate relief measures are being deployed, longer term support will focus on recovery and growth through fast disbursing financial instruments linked to sound economic policies.

The World Bank added that the situation remains uncertain, warning that prolonged conflict and infrastructure damage could deepen economic challenges for vulnerable countries, while stressing its commitment to supporting ongoing economic progress.