World Bank: Major Escalation In Israel-Hamas War Could Send Oil Soaring To $157

The World Bank's forecast for oil prices in 2024 hinges significantly on global geopolitical stability, particularly in the Middle East. In a scenario where the situation remains stable, without major disruptions stemming from the conflict between Israel and Hamas, the World Bank predicts that oil prices could average around $81 per barrel.

However, in the event of an escalation of the Israel-Hamas conflict into a wider regional confrontation, the World Bank's outlook changes markedly. Under such circumstances, it anticipates that oil prices could soar to as much as $157 per barrel. This steep increase would be driven by the heightened geopolitical risks and potential disruptions to oil supply in a region critical to global oil production.

Additionally, the World Bank outlines several other potential scenarios, where the escalation in the Middle East is significant but not to the extent of a full-blown regional conflict. In these situations, oil prices are projected to vary, with forecasts ranging from $93 to $121 per barrel. These varying price levels reflect different degrees of regional tensions and their corresponding impacts on global oil markets.

This range of forecasts by the World Bank underscores the sensitivity of oil prices to geopolitical events, particularly in the Middle East. The region's pivotal role in global oil supply means that any escalation in conflicts there can have far-reaching consequences on oil markets, influencing prices and potentially affecting global economic stability.