economy
April 28, 2026
Energy prices to rise by 24 percent
The World Bank, in a report published today, warns that the war in the Middle East will cause a strong rise in energy prices by 24 percent in 2026, while overall commodity prices will jump by more than 16 percent, which will further fuel inflation and slow global economic growth.
TL;DR
- The World Bank forecasts a 24% rise in energy prices and a 16% increase in overall commodity prices by 2026 due to the Middle East war.
- The conflict has caused a significant shock to oil supply and disrupted transportation through the Strait of Hormuz.
- Projected average oil prices are expected to rise from $69 per barrel in 2025 to $86 in 2026.
- Fertilizer prices could increase by 31% in 2026, impacting farmers' incomes and crop yields.
- Industrial metals like aluminum, copper, and tin may reach historical highs due to strong demand.
- Precious metals are also expected to see a 42% price increase due to demand for safe investments.
- Inflation in developing economies could rise to 5.1% in 2026, with growth revised downwards.
- A more negative scenario, with prolonged conflict or further infrastructure damage, could see oil prices reach $115 per barrel and inflation in developing economies hit 5.8%.
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