ADB warn of ongoing price shocks, inflation, as Middle East conflict drags on

The Asian Development Bank (ADB) predicts that oil and inflation prices will remain higher for longer due to the ongoing Middle East conflict. Regional economic growth projections have been downgraded to 4.7% for 2026, and inflation expectations have risen to 5.2% for the region. ADB forecasts oil prices at an average of $96 per barrel in 2026 and $80 per barrel in 2027, warning of potential spikes above $200 in a severe downside scenario.