World Bank mobilises support for emerging markets amid Middle East conflict disruptions

The World Bank Group announced that it is ramping up efforts to assist emerging markets facing economic strain due to the ongoing conflict in the Middle East. 

Citing rising commodity prices and logistical disruptions, the organisation pledged to deploy a full range of financial and policy instruments to help affected nations navigate the crisis.

In a statement released on Saturday, the World Bank noted that clients in emerging markets have increasingly reached out for assistance as the conflict begins to ripple through the global economy. 

The organisation is currently working closely with governments, the private sector, and regional partners to mitigate these new challenges.

According to the World Bank, the conflict has triggered significant market volatility. Shipping route disruptions have driven up costs, while supply risks have spread beyond energy into fertilizers and other critical agricultural inputs. 

The group highlighted sharp price increases between February and March, including: A nearly 40% rise in crude oil prices. An almost two-thirds increase in the price of liquefied natural gas (LNG) shipments to Asia. A nearly 50% jump in the price of nitrogen-based fertilizers in March.

“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 World Bank stated.

To address the crisis, the institution plans to leverage its active portfolio, crisis response toolkit, and pre-arranged financing facilities to deliver immediate relief. This will be followed by a transition to fast-disbursing financial instruments designed to underpin long-term recovery. 

Additionally, the World Bank’s private sector arms will provide essential liquidity, trade finance, and working capital to support firms.

While emphasising its commitment to safeguarding the economic progress of its client countries, the World Bank acknowledged the difficulty of predicting the full impact of the situation. 

The organisation warned that a prolonged conflict leading to significant damage to critical infrastructure would make the recovery increasingly difficult for the nations it supports.