The World Bank said recently that war in the Middle East is expected to push energy costs this year to their highest since Russia’s full-scale invasion of Ukraine, while fertilizer affordability also plunges.
‘The war is hitting the global economy in cumulative waves: first through higher energy prices, then higher food prices, and finally, higher inflation,’ said World Bank chief economist Indermit Gill, as the organization releases its latest commodity markets outlook.
Energy costs have rocketed after US-Israeli strikes targeting Iran from February 28. Tehran retaliated by virtually blocking the Strait of Hormuz, a key waterway through which a fifth of global oil and liquefied natural gas normally transits.
Its near-total closure has hit global supplies of other important commodities, including fertilizers.
Energy costs are projected to make a 24-per cent surge this year, hitting their highest level since Russia’s 2022 invasion of Ukraine, the World Bank said Tuesday.
