Washington, April 28 (QNA) – The World Bank (WB) predicted Tuesday that energy prices will rise by 24 percent this year, reaching their highest levels since the start of the war in Ukraine four years ago.

In its latest report on commodity market prospects, the World Bank (WB) stated that commodity prices could rise even further if the escalation in the region intensifies and supply disruptions persist longer than anticipated.

The report indicated that its baseline scenario assumes shipping volumes through the Strait of Hormuz will gradually return to near pre-war levels by next October.

In its baseline scenario, the WB projected a 16 percent increase in overall commodity prices this year, driven by the surge in energy and fertilizer prices and the record highs reached by several key metals.

The WB explained that attacks on energy infrastructure and disruptions to shipping in the Strait of Hormuz (through which, before the war, 35 percent of the world's seaborne crude oil trade passed) caused the largest oil supply shock ever.

It added that Brent crude prices remained more than 50 percent higher in mid-April than at the beginning of the year, forecasting that the average price of Brent crude would reach $86 per barrel in 2026, up from $69 in 2025.

It said that the average price of Brent crude could reach $115 this year if vital oil and gas facilities suffer further damage due to the war and the recovery of exports is delayed.

The World Bank's forecasts also indicated a 31 percent increase in fertilizer prices in 2026, driven by a 60 percent jump in the price of urea, the most widely used solid nitrogen fertilizer, which is produced by converting natural gas to produce ammonia and carbon dioxide.

The World Bank (WB) projects that average inflation in developing economies will reach 5.1 percent in 2026, up from 4.7 percent last year and a full percentage point higher than pre-war forecasts. However, inflation could climb to 5.8 percent in developing economies if the war drags on.

The (WB) added that growth will also take a significant hit, with current forecasts indicating that developing economies will grow by about 3.6 percent this year, down from pre-war projections of 4 percent. (QNA)