The World Bank has raised concerns over the growing economic impact of the Middle East conflict, warning that it is driving up commodity prices and disrupting global logistics.
In a statement issued on Thursday, the institution said the situation is already affecting its clients in emerging markets, with rising costs linked to disruptions in key shipping routes.
According to the World Bank, the conflict is creating supply risks that are extending beyond energy to fertilizers and other essential agricultural inputs.
Recent data shows that crude oil prices have surged by nearly 40 percent over the past month, while liquefied natural gas shipment costs to Asia have risen by almost two thirds. Additionally, nitrogen based fertilizer prices increased by nearly 50 percent in March.
To mitigate the impact, the World Bank said it is working closely with governments, private sector players, regional partners and other stakeholders to support affected economies.
The institution added that it is actively monitoring global market developments and maintaining direct engagement with countries most impacted by the crisis.
“We are ready to respond at scale — combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth,” the statement read.
As part of its response strategy, the World Bank plans to provide immediate financial assistance through its existing portfolio, crisis response tools and pre arranged financing facilities.
These measures include fast disbursing instruments aimed at sustaining economic recovery, as well as providing liquidity, trade finance and working capital through its private sector arms.
The institution, however, cautioned that the full extent of the conflict’s impact remains uncertain, noting that prolonged hostilities could result in more severe damage to economies and critical infrastructure.
Meanwhile, foreign ministers from the Group of Seven are meeting in France to discuss the conflicts in Iran and Ukraine, as well as broader issues concerning regional stability in the Middle East and the Indo Pacific.
