The World Bank Group has warned that the ongoing Middle East conflict is triggering a sharp rise in global commodity prices and disrupting supply chains, posing fresh challenges for emerging economies.
According to the institution, crude oil prices surged nearly 40% between February and March, while shipments of liquefied natural gas (LNG) to Asia jumped by almost two-thirds. Additionally, nitrogen-based fertilizer prices climbed 50% in March, reflecting mounting supply risks.
Supply Chain Disruptions Intensify
The World Bank noted that disruptions in key shipping routes are significantly increasing logistics costs and affecting the availability of essential commodities. The impact is no longer limited to energy markets but is also spreading into agriculture and global food systems.
Support Measures Underway
The World Bank Group said it is in close contact with affected countries and is actively monitoring market developments.
To mitigate the crisis, the institution is preparing a range of support measures, including:
- Financial assistance and liquidity support
- Trade finance and working capital for businesses
- Policy guidance for governments
- Private sector support initiatives
Officials added that while immediate relief efforts are being rolled out, long-term assistance will focus on economic recovery and sustainable growth, supported by fast-disbursing financial instruments tied to sound economic policies.
Outlook Remains Uncertain
The World Bank cautioned that the situation remains highly uncertain. A prolonged conflict, coupled with potential infrastructure damage, could deepen economic stress for vulnerable countries.
The institution reiterated its commitment to supporting global economic stability and helping countries navigate the ongoing crisis.
