Oil price could exceed $100 a barrel if Middle East conflict worsens, World Bank warns

Increase in cost of crude could drive inflation up and force central banks to keep interest rates high

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A serious escalation of tensions in the Middle East would push the price of oil above $100 a barrel and reverse the recent downward trend in global inflation, the World Bank has warned.

The Washington-based institution said the recent fall in commodity prices had been levelling off even before the recent missile strikes by Iran and Israel – making interest rate decisions for central banks tougher.