The World Bank Group (WBG) said it is stepping up support for emerging market (EM) economies like the Philippines, as the ongoing Middle East conflict drives up commodity prices and disrupts global logistics, posing new risks to growth and food security.

In a statement on Thursday, March 26, the Washington-based multilateral lender said several of its client countries have already reached out for assistance as the crisis begins to ripple through energy and agricultural supply chains.

“We are working with governments, the private sector, regional partners, and other stakeholders to help them through this new set of challenges,” the WBG said.

The lender said it is closely tracking global market developments and is in direct contact with the most affected countries to assess on-the-ground conditions. It warned that shipping route disruptions are raising costs, while supply risks are spreading beyond energy to fertilizers and other key farm inputs.

Crude oil prices surged by nearly 40 percent between February and March, while liquefied natural gas (LNG) shipments to Asia rose by almost two-thirds, the WBG noted. Prices of nitrogen-based fertilizers also jumped by nearly 50 percent in March, underscoring the growing strain on agricultural production costs worldwide, it added.

In response, the WBG said it is mobilizing a full range of financial and technical support to help countries manage the shock.

“We are ready to respond at scale—combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth,” it said.

The WBG added that it will leverage its existing portfolio and crisis response tools to deliver immediate assistance, before transitioning to fast-disbursing financing programs anchored on sound economic policies.

Through its private sector arms, the WBG also plans to provide firms with liquidity support, trade finance, and working capital to sustain operations amid tightening global conditions.

While acknowledging that the situation remains fluid, the lender cautioned that prolonged conflict and further damage to critical infrastructure could deepen the economic impact on vulnerable economies.

“We are determined to be helpful and do all we can to safeguard some of the hard-won economic progress that these countries are making,” the WBG said.