A new report from the World Bank examines the potential impact of the ongoing conflict in the Middle East on commodity prices, especially oil. The World Bank’s latest Commodity Markets Outlook provides a preliminary assessment of the possible implications of the conflict for commodity markets in the near term. Overall commodity prices are projected to fall 4.1% next year, as supplies of agricultural commodities and base metals increase. However, it also warns that an escalation of the conflict could push global commodity markets into uncharted waters, with significant implications for inflation, growth, and poverty. The report cautions that higher oil prices could have spillover effects on other commodity markets, especially food.
