Massive increase predicted in fuel prices
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If Israeli attacks on Gaza continue, the price of crude oil in the global market could exceed $150 per barrel. The World Bank has warned that if oil-producing central countries reduce supply, it could lead to a situation similar to the 1970s.
The World Bank says that if Israeli attacks on Gaza persist, the prices of energy and food can significantly increase, causing a double shock for the commodity market due to the ongoing conflict in Ukraine and now in Gaza.
According to the current assessments by the World Bank, a 4.1% reduction in commodity prices and an average decrease of $81 per barrel in oil prices are expected next year.
However, if the Middle East conflict intensifies, there could be a sudden increase in commodity and oil prices. In the case of severe regional disruptions, global oil prices could reach as high as $102 to $121 per barrel.
