The World Bank has allocated $25 billion in initial financing to address the consequences of the crisis resulting from the war against Iran. Ajay Banga, President of the World Bank, announced on Sunday that in addition to this amount, there is the possibility of securing another $35 billion by reallocating resources from approved projects.
Impact of Rising Energy Prices
Banga warned that the increase in diesel and chemical fertilizer prices may lead more countries to seek financial assistance in the coming months. He stated that if the crisis worsens, the World Bank could increase the amount of allocable resources to $100 billion. This amount would exceed the approximately $70 billion in aid provided by the institution during the COVID-19 pandemic.
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Pressure on Developing Countries
Banga also pointed to the rising borrowing costs and debt pressures in developing countries, stating that the total commitments of these countries to foreign lenders will reach about $400 billion by 2026. This has raised serious concerns about the economic sustainability of these nations.
Last month, the World Bank also announced that in the fiscal year ending June 2026, it successfully attracted $112 billion in private capital and invested $123 billion from its own resources. Thus, the total financing of this institution has reached $235 billion.
The aggression of the United States and the Israeli regime against Iran, which began on February 27, 2026, has been accompanied by disruptions in shipping traffic in the Strait of Hormuz and rising energy and industrial goods prices in various countries. This situation has severely impacted the economies of the affected countries and increased the need for financial support.
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