The World Bank Group has raised alarm over the growing economic fallout from the ongoing conflict in the Middle East, warning that surging commodity prices and disrupted supply chains are beginning to strain emerging economies.
In a statement released on Saturday, the global lender said several of its client countries have already reached out for support as the crisis begins to ripple across key sectors, including energy, agriculture, and logistics.
“A number of the World Bank Group’s clients in emerging markets have reached out to us as the conflict in the Middle East has started to impact commodity prices and logistics,” the institution said, noting that it is working closely with governments, private sector actors, and regional partners to address the emerging challenges.
The bank disclosed that global markets have reacted sharply to the conflict, with crude oil prices surging by nearly 40 percent between February and March. It added that the cost of liquefied natural gas shipments to Asia has risen by almost two-thirds, while nitrogen-based fertilizer prices jumped by close to 50 percent within the same period.
According to the statement, disruptions to shipping routes have significantly increased transportation costs, while supply risks are spreading beyond energy markets into critical agricultural inputs, raising concerns about food production and inflation in vulnerable economies.
“Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilizers and other critical agricultural inputs,” the bank said, highlighting the broadening impact of the crisis.
In response, the World Bank said it is preparing a coordinated intervention to help affected countries manage the economic shock. The institution pledged to deploy a mix of immediate financial relief, policy advisory support, and private sector financing to stabilise economies and protect jobs.
“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 noted. It added that support would include leveraging existing financing programmes, activating crisis response tools, and deploying fast-disbursing funding instruments tied to sound economic policies.
The bank also said its private sector arms would step in to provide liquidity, trade finance, and working capital to businesses facing disruptions, particularly in import-dependent economies.
While acknowledging that the full economic impact of the conflict remains uncertain, the World Bank cautioned that a prolonged crisis could deepen the challenges, especially if critical infrastructure continues to be affected.
“Clearly, this is an evolving situation and we cannot predict the full range of impacts… the longer this lasts, and the more damage there is to critical infrastructure, the more challenging this will be for our clients,” the institution stated.
Despite the uncertainty, the bank reaffirmed its commitment to supporting vulnerable economies, stressing that its priority is to safeguard the development gains achieved in recent years and help countries navigate the unfolding crisis.
