Escalation of Middle East Conflict Could Push Oil Prices to $157 a Barrel - World Bank

An escalation of the current Palestine-Israel conflict in a widespread disruption scenario could push global oil prices to as high as $157 per barrel, the World Bank warned on Monday.

"In a 'large disruption' scenario—comparable to the Arab oil embargo in 1973— the global oil supply would shrink by 6 million to 8 million barrels per day. That would drive prices up by 56% to 75% initially—to between $140 and $157 a barrel," the World Bank stated in its Commodity Markets Outlook.

A "small disruption" scenario could increase global oil prices to between $93 and $102 per barrel, while a "medium disruption" scenario could spike them to between $109 and $121.