World Bank: Commodity Prices for Energy, Food, and Metals to Soar in 2026—War Affects Your Finances in Three Ways

Buzzline

On April 28, the World Bank alerted that global commodity prices are set to rise by 16 percent in 2026, largely due to a 24 percent increase in energy prices stemming from the Iran conflict and the closure of the Strait of Hormuz. This surge will also impact food prices, the cost of fertilisers, and base metal prices, with aluminium, copper, and tin expected to hit record levels. Additionally, precious metals are anticipated to escalate by 42 percent as geopolitical tensions boost safe-haven investments. Inflation rates in developing nations are now forecasted at 5.1 percent—one full percentage point above pre-conflict estimates—with the World Bank Chief Economist cautioning that the war is striking the global economy through successive waves of shocks in energy, food, and inflation, disproportionately affecting the most vulnerable.

Transcript

00:00The Iran war is not just an oil shock.

00:03The World Bank confirmed yesterday,

00:05it is hitting your grocery bill, your materials costs, and your savings simultaneously.

00:10Global commodity prices will rise 16% in 2026.

00:15Energy up 24%.

00:17Food prices rising as fertilizer costs surge alongside natural gas disruptions.

00:23Aluminium, copper, and tin are forecast to hit all-time highs.

00:27Demand from data centers, EVs, and clean energy all competing for tightening supplies.

00:32Precious metals are forecast to surge 42% as geopolitical fear drives record demand for gold and silver.

00:40Investors are fleeing to safety.

00:42Inflation in the developing world is now projected at 5.1%.

00:46A full point higher than before the war.

00:49The poorest spend the most of their income on food and fuel.

00:53First energy, then food, then inflation.

00:56The war is hitting the global economy in cumulative waves,

01:00and the most vulnerable absorb every single one.

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