The World Bank Group has raised concerns over mounting economic pressures stemming from the ongoing conflict in the Middle East, warning that prolonged instability could significantly disrupt global markets and undermine growth in emerging economies.
The institution said in a statement that it is actively engaging with affected countries as sharp increases in energy, fertilizer, and transportation costs begin to ripple across global supply chains. The Bank noted that crude oil prices surged by nearly 40 percent between February and March, while liquefied natural gas shipments to Asia rose by almost two-thirds during the same period. Prices of nitrogen-based fertilizers also climbed by close to 50 percent, intensifying concerns over food security and agricultural production.
According to the World Bank, disruptions to key shipping routes have driven up logistics costs and heightened supply risks, with impacts spreading beyond energy markets into critical agricultural inputs. Several client countries in emerging markets have already reached out to the institution for support as they grapple with rising import bills and inflationary pressures.
The Bank said it is closely monitoring global market developments and maintaining direct communication with the most affected nations to assess conditions on the ground. It emphasized that the evolving nature of the crisis makes it difficult to fully predict the scale and duration of the economic fallout.
In response, the World Bank Group signaled readiness to deploy a broad range of financial and technical support measures. These include immediate relief through existing portfolios and crisis-response tools, as well as longer-term assistance anchored in policy reforms aimed at stabilizing economies and restoring growth.
The institution added that it will leverage its financing facilities to provide rapid disbursements where needed, while its private sector arms will focus on delivering liquidity support, trade finance, and working capital to businesses struggling with disrupted operations.
“The longer this situation persists, particularly if critical infrastructure is damaged, the more severe the consequences will be for our client countries,” the statement said, underscoring the risks to hard-won economic gains in vulnerable regions.
Despite the uncertainty, the World Bank reiterated its commitment to supporting governments, firms, and households through the crisis, with the goal of cushioning immediate shocks and facilitating a path to recovery.
