WASHINGTON (AP) — The World Bank reported Monday that oil prices could be pushed into “uncharted waters” if the violence between Israel and Hamas intensifies, which could result in increased food prices worldwide.
The World Bank report simulates three scenarios for the global oil supply in the event of a small, medium or large disruption.
But during a “medium disruption” — equivalent to the disruptions experienced during the Iraq war — the global oil supply would decline by 3 million to 5 million barrels per day, driving oil prices up possibly by 35%.
Ayhan Kose, the World Bank’s deputy chief economist, said higher oil prices will inevitably result in higher food prices.
Overall, oil prices have risen about 6% since the start of the conflict.
Persons:
Benjamin Netanyahu, Indermit Gill, ” Gill, Ayhan Kose, Kose, —, Janet Yellen, Biden, ”, Fatih Birol
Organizations:
WASHINGTON, World Bank, Hamas, Israel, Bank, Bloomberg, ” International Energy Agency
Locations:
Israel, Gaza, Iran, Lebanon, Iraq, Ukraine, U.S