Lates News

The World Bank said on Wednesday that global commodity prices are expected to rise 23% in 2026, driven by higher energy prices during the Middle East war, disrupted freight transport, obstacles to Black Sea grain shipments, and strong demand for safe-haven assets such as gold. In its latest Commodity Markets Outlook report, the World Bank noted that prices for oil, natural gas, food, and metals have all risen sharply this year as global shocks continue to intensify. The situation could deteriorate further if the Middle East conflict escalates and Russian oil infrastructure continues to be damaged. The report forecasts that commodity prices will fall 7% next year. However, if the shocks persist, including the most severe El Nio phenomenon since 1950, food commodity prices could remain elevated, increasing the risk of higher inflation and tighter monetary policy. The World Bank pointed out that the global economy's ability to withstand future supply shocks has weakened. Global oil inventories have been steadily depleted during the Middle East war. The bank expects global oil supply to decline 5.2% in 2026, the largest drop in the past 40 years apart from the 2020 global recession.