BlockBeats news: On October 28, the World Bank stated on Wednesday that global commodity prices are projected to rise by 23% by 2026, driven by higher energy prices during the Middle East conflict, disrupted freight routes, blocked 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 global shocks have intensified this year, causing significant price increases in oil, natural gas, food, and metals. If the Middle East conflict escalates further and Russian oil infrastructure continues to be damaged, the situation could worsen.
The report forecasts that commodity prices will decline by 7% next year. However, if shocks persist—including the strongest El Niño event since 1950—food commodity prices may remain elevated, increasing the risk of higher inflation and tighter monetary policy. The World Bank notes that global oil inventories have been steadily depleted during the Middle East conflict. The bank expects global oil supply to fall by 5.2% in 2026, the largest decline in four decades aside from the 2020 global economic recession.