The World Bank Group has warned that the ongoing conflict in the Middle East is placing increasing pressure on global commodity markets and supply chains, with emerging market economies already feeling the impact.

In a statement, the institution said a number of its client countries had raised concerns as disruptions to shipping routes and trade flows begin to drive up costs and heighten supply risks.

The World Bank noted that the effects are spreading beyond energy markets into key agricultural inputs, raising concerns about economic stability and food security.

“Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilisers and other critical agricultural inputs,” the group said.

According to the Bank, crude oil prices rose by nearly 40% between February and March, while liquefied natural gas shipments to Asia increased by almost two-thirds over the same period. Prices for nitrogen-based fertilisers also climbed by nearly 50% in March.

The institution said it is closely monitoring developments and is in direct contact with the most affected countries to assess on-the-ground impacts.

The World Bank indicated it is preparing a coordinated support package aimed at helping governments, businesses and households manage the fallout from the Middle East crisis. 

The response will include immediate financial relief measures, policy support and private sector interventions, drawing on existing financing facilities and crisis response tools.

“We are ready to respond at scale – combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth,” the bank said.

Through its private sector arms, the World Bank is expected to provide liquidity, trade finance and working capital to affected firms.

While the full extent of the impact remains uncertain, the institution cautioned that prolonged disruption – particularly to critical infrastructure – could intensify the challenges facing economies.