Commodity prices to surge 23pc, warns World Bank

Global commodity prices are projected to skyrocket by 23 percent in 2026, according to the World Bank's latest outlook. Energy prices, including oil, natural gas, and metals, are expected to rise sharply, driven by shortages caused by the Middle East conflict and disruptions in cargo shipping. Food prices could see an even more significant increase, potentially reaching new highs due to supply issues in the Black Sea and an adverse El Nino weather event.

The report warns that the situation could worsen if the Middle East conflict escalates further and Russian oil infrastructure remains damaged. Commodity markets are facing multiple shocks simultaneously, with oil stocks depleted and global oil supply projected to drop 5.2 percent in 2026, the largest decline in four decades. The World Bank emphasizes the need to protect vulnerable populations and support low-income countries grappling with debt burdens, providing $8.7 billion in low-cost loans and aid to 25 affected countries.