Middle East war to cut global growth, spike inflation despite truce: World Bank

13-Apr-2026

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World Bank President Ajay Banga warned that the Middle East war could significantly harm the global economy, cutting growth and raising inflation, especially if ceasefire efforts fail. 

The conflict has disrupted vital energy and commodity supplies, pushing oil prices up 50%. Developing countries face debt and energy challenges, prompting the World Bank to offer flexible crisis funding while advising cautious subsidy use. 

The bank promotes energy diversification, including nuclear, hydro, and renewables, highlighting investments in Nigeria and Mozambique as models for energy self-sufficiency.