The World Bank has released a report warning that global energy prices are set for their biggest surge in four years as the West Asia conflict continues to escalate. The disruption in supply routes and the ongoing blockade of the Strait of Hormuz have triggered an oil shock that is driving up costs for electricity, heating, and transportation worldwide. 

The report highlights that the surge in energy costs is likely to derail growth in many developing economies and exacerbate global inflation. Analysts note that the volatility in the energy market is making it increasingly difficult for central banks, including the US Federal Reserve, to manage interest rates and stabilize national currencies. 

In response to the crisis, many nations are being urged to accelerate their transition to renewable energy sources to reduce dependence on volatile oil markets. However, the immediate priority for most governments remains securing affordable energy for their citizens to prevent social unrest and further economic stagnation during this period of high risk.