The World Bank has warned that global energy prices are set to surge sharply due to the ongoing conflict in the Middle East, raising concerns over inflation and slowing economic growth worldwide.
According to the bank’s latest Commodity Markets Outlook, energy prices are projected to rise by around 24% in 2026, marking the steepest increase in four years and reaching levels not seen since the 2022 global energy crisis.
The surge is being driven by major disruptions to oil supplies, particularly through the strategically vital Strait of Hormuz, a key global shipping route for crude oil. Ongoing geopolitical tensions and attacks on energy infrastructure have triggered what the World Bank describes as one of the largest oil supply shocks in recent history.
Brent crude oil prices are expected to average around $86 per barrel in 2026, with the possibility of climbing as high as $115 per barrel if the conflict intensifies or supply disruptions persist.
The rise in energy costs is also expected to push overall commodity prices up by about 16%, increasing inflation pressures globally. Developing economies are likely to be hit the hardest, with inflation projected to reach around 5.1%, while economic growth may slow to 3.6%.
Experts warn that higher fuel costs will have cascading effects on transportation, manufacturing, and food production, further intensifying the cost-of-living crisis in many countries. The World Bank emphasized that prolonged conflict could deepen the economic impact, particularly for low-income and heavily indebted nations. News as Reported.
