The World Bank has cautioned that escalating conflict in the Middle East could propel oil prices to over $150 per barrel, triggering significant increases in energy and food costs worldwide.
This comes amid a vulnerable global economy still reeling from last year's price surges following Russia's invasion of Ukraine. Currently, oil prices are relatively stable at approximately $90 per barrel and are expected to decline.
However, under a worst-case scenario, the World Bank compares the situation to the 1970s oil crisis, when prices could soar to between $140 and $157 per barrel.
The Bank also warns of a "dual energy shock" affecting both oil and gas supplies, a situation unseen for decades.
European gas prices have already surged due to concerns over pipeline disruptions near Gaza, although oil markets have largely remained unaffected. Should tensions not escalate further, prices are projected to fall to $81 per barrel.