WASHINGTON: A sharp rise in global energy prices has been projected due to ongoing tensions in the Middle East, according to a latest report by the World Bank.
Energy prices are expected to increase by up to 24% in 2026, the report said.
It was noted that even if regional tensions ease by May, upward pressure on prices is likely to persist.
Further escalation and supply disruptions were cited as key risks that could drive prices even higher.
Attacks on oil and gas infrastructure and disruptions to shipping through the Strait of Hormuz have significantly affected supply chains, with visible impacts on global markets.
The average price of Brent crude is projected to reach $86 per barrel in 2026, compared to an average of $69 per barrel in 2025.
Analysts have warned that additional damage to energy infrastructure or delays in restoring trade routes could push prices beyond current projections.
A gradual recovery in tanker traffic through the Strait of Hormuz has been anticipated. Flows are expected to approach pre-conflict levels by October, contingent on improvements in regional stability.
