The World Bank warns that a full-scale Middle East conflict due to Israel’s war in Gaza could lead to oil prices exceeding $150 per barrel.

The bank compares this scenario to the 1973 Arab oil embargo and warns that even minor disruption could result in a significant increase in prices.

Analysts also caution about the potential cascading impact of escalating oil prices on other commodities, potentially leading to inflation.

The bank emphasizes that the recent Middle East crisis amplifies geopolitical risks.