The World Bank said Thursday it is preparing financial support for countries affected by the economic fallout from the conflict in the Middle East, warning that disruptions to shipping and rising energy costs are putting pressure on vulnerable economies.
In a statement, the Washington-based lender said it would work with governments facing the consequences of the conflict by deploying fast-disbursing financing tools, while also offering policy advice and support for private businesses.
The move comes as fears mount over the broader global impact of instability in the Middle East, a region critical to global energy supply and trade routes. The World Bank said countries already grappling with debt, inflation and weak growth could face fresh strain if the conflict continues to disrupt commerce and drive up the cost of essential imports.
“The World Bank Group stands ready to respond at scale with immediate financial relief, policy expertise and private sector support to preserve jobs and growth in affected countries,” the institution said.
It added that it aims to provide “immediate relief” by drawing on its existing lending portfolio, crisis response tools and pre-arranged financing facilities.
The bank did not immediately disclose how much funding could be mobilised or which countries were likely to receive support first, but it said it remains in direct contact with the most affected client governments.
The announcement highlights growing concern among international financial institutions over the secondary effects of the Middle East conflict, particularly on energy markets, shipping costs and food-related supply chains.
The World Bank warned that shipping route disruptions are increasing transport and insurance costs, while risks are spreading from oil and gas markets into fertilizers and other critical agricultural inputs.
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That raises concerns for many developing economies, especially those dependent on imported fuel and farm inputs, which could see higher consumer prices and tighter fiscal conditions in the months ahead.
The lender said it plans to transition progressively to policy-based financing, a type of support that is usually disbursed quickly and often tied to agreed economic or governance reforms.
Such instruments were used extensively during the COVID-19 pandemic, when the World Bank moved rapidly to support countries hit by collapsing revenues, health emergencies and supply disruptions.
At the time, the bank channelled hundreds of billions of dollars in emergency and development support to help governments maintain services, stabilise economies and protect vulnerable populations.
By invoking a similar toolkit now, the institution is signalling that it sees the Middle East conflict not only as a geopolitical crisis but also as a growing economic shock for poorer nations.
The World Bank also said its private-sector arms would step in to help companies weather the turbulence.
“Through our private sector arms, we will provide firms with essential liquidity, trade finance, and working capital,” it said.
That support is expected to target businesses facing difficulty importing goods, paying for transport or managing higher energy and production costs.
Analysts say the bank’s intervention could be especially important for countries in Africa, Asia and parts of Latin America, where many economies are still struggling to recover from the aftershocks of the pandemic, high global borrowing costs and volatile commodity prices.
A prolonged conflict in the Middle East could deepen those challenges by pushing up fuel prices, squeezing public finances and increasing the cost of food production.
The World Bank’s statement comes as policymakers worldwide monitor the conflict’s impact on inflation and trade, amid fears that sustained disruptions could weigh on global growth.
While the lender stopped short of declaring a full-scale emergency financing package, its message was clear: countries caught in the economic spillover from the war should expect the institution to move quickly if conditions worsen.
For governments already under pressure, that could provide a crucial buffer against another externally driven economic shock.
