World Bank Warns of Potential Oil Price Shock Due to Middle East War

The World Bank has warned that a major escalation of the conflict between Israel and Hamas, potentially leading to a broader Middle East conflict, could cause oil prices to surge by as much as 75%. The World Bank's study suggests that such a crisis could exacerbate the energy market disruptions caused by Russia's war in Ukraine, leading to a dual energy shock for the global economy. The worst-case scenario could result in a disruption similar to the 1973 Arab oil embargo, removing up to eight million barrels of oil per day from the market and sending prices as high as $157 per barrel.