The World Bank has announced plans to mobilise up to $100 billion in financial support to help developing countries cope with the economic impact of the growing crisis in the Middle East.
The move comes amid warnings that the ongoing tensions could significantly weaken global economic growth, drive up energy prices, increase inflation, and place additional pressure on vulnerable economies around the world.
According to the World Bank’s latest Global Economic Prospects Report, global growth is expected to slow from 2.9% in 2025 to 2.5% in 2026, marking one of the weakest growth periods since the COVID-19 pandemic.
Billions Ready For Immediate Deployment
The global lender disclosed that between $50 billion and $60 billion is already available through existing funding channels, including $25 Billion in pre-arranged financing .
The funds are expected to help countries strengthen social welfare programmes, stabilise government finances, support businesses, and assist farmers facing economic difficulties caused by the crisis.
The World Bank revealed that more than 30 countries are already working with the institution to improve their readiness and ensure rapid access to support if conditions worsen.
Oil Prices And Inflation Raise Fresh Concerns
The report highlighted growing concerns over disruptions in global energy markets, particularly following challenges linked to the Strait of Hormuz, a critical global oil shipping route.
As a result, Brent crude oil prices are projected to average $94 per barrel in 2026, representing a sharp increase compared to previous levels.
The World Bank also warned that rising fertiliser costs could push food prices higher, contributing to global inflation, which is forecast to reach 4% this year, up from 3.3% in 2025.
Developing Nations Face Growing Pressure
World Bank President Ajay Banga said the institution is focused on helping countries protect citizens while maintaining economic stability during the crisis.
He stressed that the bank stands ready to provide additional financing, guarantees, and private-sector support if economic pressures continue to intensify.
The report further warned that a prolonged escalation of the conflict could reduce global growth to as low as 1.3% in 2026, while inflation could climb even higher.
Africa Not Immune To The Impact
The World Bank noted that Sub-Saharan Africa could experience increased inflation and rising food prices due to fertiliser shortages and higher agricultural production costs.
Developing economies as a whole are expected to see growth slow significantly before gradually recovering in the coming years.
The institution also raised concerns about rising debt levels across developing nations, noting that government debt has surged sharply over the past decade, making it harder for many countries to respond to economic shocks and invest in critical sectors such as healthcare, education, and infrastructure.
Despite the challenges, World Bank officials urged governments to use the crisis as an opportunity to strengthen economic policies, improve infrastructure, attract investment, and create jobs that can support long-term growth.
Source: Adapted from the World Bank’s Global Economic Prospects Report
