The World Bank has issued a warning that global energy prices are expected to rise significantly in 2026, potentially increasing by around 24% and reaching their highest level since the 2022 energy crisis. The report attributes this projected surge mainly to ongoing geopolitical tensions in the Middle East and continued disruptions in global supply chains, which are affecting the stability of energy markets worldwide.
According to the outlook, overall commodity prices are also likely to see a notable increase of approximately 16%. This rise is expected to be particularly evident in key sectors such as oil, fertilizers, and industrial metals, all of which are highly sensitive to supply constraints and global demand fluctuations. Brent crude oil prices are forecast to average around 86 dollars per barrel, with analysts pointing to instability in critical shipping and energy transit routes, including the Strait of Hormuz, as a major contributing factor.
The World Bank further cautioned that sustained increases in energy and commodity prices could have broader economic consequences. Higher costs are likely to fuel inflation across many economies, particularly in countries that heavily rely on imports. In addition, global economic growth could slow down as production and transportation expenses rise.
The report also highlights concerns about food security, especially in developing nations where a large portion of household income is already spent on essential goods. Rising fertilizer and fuel prices could lead to higher food production costs, potentially increasing hunger risks and affecting millions of vulnerable people around the world.
