Bangkok: The World Bank has issued a stark warning that energy prices may rise by approximately 24% by 2026, spurred by the ongoing conflict with Iran that is significantly impacting global commodity markets.

According to Thai News Agency, in its latest Commodity Markets Outlook report, released on Tuesday, the World Bank highlighted that energy prices could reach their highest levels since 2022, following Russia's invasion of Ukraine. An improvement in energy prices is anticipated by May as shipping activities through the Strait of Hormuz are expected to gradually return to pre-war levels by October.

The World Bank also noted that the Middle East conflict's effects extend beyond energy, impacting various industries, including fertilizers, metals, and other materials. Fertilizer prices, in particular, are projected to rise by about 31% compared to the same period last year.

Indermit Gill, the World Bank's chief economist, commented on the cascading economic effects, stating, "The global economic war is sweeping in waves, one after another. First came soaring energy prices, then food prices rose, and finally, inflation increased." He cautioned that nascent or developing economies would suffer the most from the dual challenges of accelerating inflation and decelerating economic growth.