World Bank Warns Energy Prices Are Soaring as Middle East Conflict Escalates

The World Bank says energy prices are spiking after a US-Israeli offensive on Iran broke out in late February 2026, disrupting crucial shipping chokepoints—most importantly, the Strait of Hormuz.

Energy Prices Climb

Crude oil shot up nearly 40% in just a month. Brent broke past $116 a barrel. Asia's LNG prices climbed even higher, jumping by about two-thirds. Nitrogen-based fertilizers weren’t spared either, surging close to 50% in March. That kind of jump ripples fast, especially for farmers and supply chains everywhere.

The Strait of Hormuz: Bottleneck at a Standstill

The closure of the Strait of Hormuz left almost 1,900 ships stuck—including oil tankers carrying about 190 million barrels. Under normal conditions, 20 million barrels move through daily, so this isn’t just a speed bump. The whole world feels the pinch, but developing economies are getting hit the hardest.

World Bank Steps In

In response, the World Bank is stepping up: offering emergency liquidity, trade finance, and advice to governments and businesses, especially in energy-hungry regions like Asia and Africa. But they’re warning—the longer the disruption lasts, the bigger the risks for government budgets and social stability."

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