The World Bank has issued a serious warning that oil prices and food prices could surge dramatically due to escalating conflict in the Middle East.
The World Bank outlined three potential scenarios for oil supply disruptions, each with varying degrees of price increases. The worst-case scenario could see oil prices rise by as much as 75%.
Higher oil prices drive up inflation and everyday costs.
The ongoing Russian invasion of Ukraine has already disrupted the global economy. If Middle East tensions worsen, it could lead to a “dual shock” affecting global commodity markets.