World Bank Warns of Rising Costs Amid Middle East Conflict

The World Bank has cautioned about increasing supply risks and mounting costs as conflicts in the Middle East escalate. The organization noted that crude oil prices surged nearly 40 percent between February and March, while liquefied natural gas shipments to Asia rose by almost two-thirds, and nitrogen-based fertilizer prices increased nearly 50 percent in March.

The Washington-based lender is actively working with governments and private sector partners in the region to address the challenges posed by the conflict. The World Bank is ready to provide immediate financial relief, policy expertise, and support for recovery and job growth.

They will leverage a range of financial instruments to deliver relief to governments, firms, and households. The situation is evolving, and the World Bank acknowledges that the full impact of the conflict on critical infrastructure and economic progress remains uncertain.