WORLD BANK PREDICTS ENERGY PRICE SURGE- WBG Chief Economist says the surge marks severe implications for ‘poorer populations’
The World Bank has reportedly predicted that energy prices may surge 24 percent in 2026 to their highest level, while overall commodity prices are projected to increase 16 percent.
In its latest released Commodity Markets Outlook, the World Bank said that the Strait of Hormuz conflict has triggered the largest oil supply shock on record, with an initial reduction in global oil supply of about 10 million barrels per day.
Fertilizer prices are projected to increase by 31 percent this year, driven by a 60-percent jump in urea prices, while prices for base metals, including aluminum, copper and tin, are expected to reach all-time highs.
Precious metals prices are forecast to increase 42 percent as geopolitical uncertainty fuels demand for safe-haven assets, and the report claims that commodity prices could reportedly rise even higher.
The World Bank Group’s chief economist and senior vice president for Development Economics, Indermit Gill, claims that the impact on the global economy is in cumulative waves, with more severe implications to poorer populations.
