Asian Development Bank warns of ongoing price shocks and inflation, as Middle East conflict drags on

The Asian Development Bank (ADB) warned of ongoing price shocks and inflation due to the Middle East conflict, predicting that energy prices will remain elevated for an extended period. Initial projections of 5.1% regional growth have been revised down to 4.7% and 4.8% amid increased dependence on imported oil and gas, particularly in South Asia, Southeast Asia, and the Pacific. Oil prices are forecast at $96 per barrel in 2026 and $80 in 2027, with potential spikes to over $200 in a worst-case scenario.