If Israeli attacks on Gaza continue, the price of crude oil in the globalmarket could exceed $150 per barrel. The World Bank has warned that ifoil-producing central countries reduce supply, it could lead to a situationsimilar to the 1970s.
The World Bank says that if Israeli attacks on Gaza persist, the prices ofenergy and food can significantly increase, causing a double shock for thecommodity 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 incommodity prices and an average decrease of $81 per barrel in oil pricesare expected next year.
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However, if the Middle East conflict intensifies, there could be a suddenincrease in commodity and oil prices. In the case of severe regionaldisruptions, global oil prices could reach as high as $102 to $121 perbarrel.