Warnings of Commodity Market Impact Amid Israel-Palestine War

The ongoing conflict between Israel and Hamas has raised concerns about the effects it may have on commodity markets.

In a Commodity Markets Outlook report released on Monday, the World Bank warned that a severe shock to the markets could lead to increased food insecurity globally.

This would be exacerbated by rising energy prices, as food prices tend to increase proportionally.

Operators in Mauritius have expressed concerns about the impact on basic goods, particularly as the country is already facing a shortage of rice.

As the risk of further shortages increases with the conflict, importers are advised to diversify their sources of supply and stockpile goods where possible.

While no specific commodities have been identified as being at high risk, oil and other energy sources are expected to be among the first to be affected.

Source: Defi Media