By Umar Daraz | June 11, 2026 | 3 Min Read
The World Bank Group has announced a major financial support package worth up to $100 billion to help developing countries deal with the growing economic consequences of the ongoing conflict in the Middle East. The move comes amid rising energy prices, slowing economic growth, and increasing pressure on vulnerable economies worldwide.
According to the World Bank, between $50 billion and $60 billion will be made available immediately through existing financial instruments. This includes approximately $25 billion in pre-arranged financing that can be quickly deployed to countries facing economic stress caused by the conflict. If the crisis continues and economic conditions worsen, the institution is prepared to increase its support to between $80 billion and $100 billion over the next 15 months.
The financial assistance package is designed to help governments maintain essential public services, strengthen social safety programmes, and provide liquidity support to businesses and agricultural sectors affected by the economic fallout. More than 30 countries are already working with the World Bank to prepare rapid-response measures aimed at reducing the impact of the crisis on their economies.
World Bank President Ajay Banga emphasized that the organization’s immediate priority is helping countries absorb the economic shock while protecting long-term development goals. He noted that many developing nations have already faced numerous challenges over the past decade, including the Covid-19 pandemic, inflationary pressures, and geopolitical tensions.
Banga stated that while the impact of the Middle East conflict varies from country to country, governments must focus on protecting their populations and preserving economic stability without sacrificing future growth and job creation. He added that the World Bank is ready to provide additional financing, guarantees, and private-sector support if economic pressures continue to intensify.
The announcement coincided with the release of the World Bank’s latest Global Economic Prospects report, which lowered its forecast for global economic growth in 2026 to 2.5 percent. This represents the weakest growth rate since the Covid-19 pandemic. The report cited higher energy prices, rising inflation, and tighter financial conditions linked to the Middle East conflict as key factors behind the downgrade.
World Bank Chief Economist Indermit Gill described the current situation as one of the largest supply shocks experienced in more than five decades. He pointed to sharp increases in oil, natural gas, and fertilizer prices following the outbreak of conflict in the Gulf region. These price increases have placed significant strain on energy-importing countries and contributed to higher inflation worldwide.
The World Bank now expects developing economies to grow by only 3.6 percent in 2026, down from 4.4 percent in 2025. Countries directly affected by the conflict are likely to experience the most severe economic slowdown, while many others face rising import costs and mounting fiscal challenges.
With many developing nations already burdened by high debt levels and limited fiscal resources, the World Bank’s crisis-response package aims to prevent deeper economic disruptions. The institution believes that timely financial support can help countries protect vulnerable populations, maintain stability, and lay the groundwork for long-term recovery despite growing global uncertainties
Umar Daraz is the Founder and Editor of TodayEast, an independent digital news platform covering global affairs, business, technology, sports, and world rankings. He specializes in data-driven journalism, international news analysis, economic trends, and emerging technologies. Through TodayEast, he aims to provide accurate, accessible, and insightful reporting on the stories shaping the world.