The World Bank said that war in the Middle East is expected to push energy costs this year to their highest since Russia’s full-scale invasion of Ukraine.
“The war is hitting the global economy in cumulative waves: first through higher energy prices, then higher food prices, and finally, higher inflation,” said World Bank chief economist Indermit Gill.
Energy costs are projected to make a 24-percent surge this year, hitting their highest level since Russia’s 2022 invasion of Ukraine, the World Bank said.
Meanwhile, fertiliser costs are set to jump by 31 percent this year due to a 60-percent surge in urea prices, dragging fertilizer affordability to its worst since 2022 as well.
Commodity costs overall are expected to spike by 16 percent in 2026, driven by fallout from the war and metals prices.