A top World Bank official voiced extreme concern Wednesday over the economic fallout from the ongoing war in Iran, highlighting risks to inflation, jobs, and food security.

Paschal Donohoe, the bank's managing director and chief knowledge officer, stated the institution is "extremely concerned regarding the effect that this will have on inflation, on jobs, and on food security." He noted particular vulnerability for countries in Asia and Africa facing energy, price, and supply shocks. The World Bank is in discussions with member states to address immediate needs through loans and technical assistance.

The warnings come amid the war's escalation into its fifth week. The United States and Israel launched strikes against Iran on February 28, 2026, targeting military sites, nuclear facilities, and leadership, including the assassination of Supreme Leader Ali Khamenei. Iran retaliated with missile and drone attacks on Israel, U.S. bases in the region, and Gulf states, while partially closing the Strait of Hormuz, a chokepoint for about 25-30% of global oil trade.

In a March 26 statement, the World Bank Group detailed immediate impacts: crude oil prices rose nearly 40% between February and March, liquefied natural gas shipments to Asia increased by almost two-thirds, and nitrogen-based fertilizer prices jumped nearly 50%. Shipping disruptions have spread risks from energy to agricultural inputs, threatening food supplies in vulnerable nations.

"The longer this lasts, and the more damage there is to critical infrastructure, the more challenging this will be for our clients," the statement read. The bank pledged to respond "at scale," combining financial relief, policy advice, and private sector support to protect jobs and growth. Measures include fast-disbursing loans, crisis toolkits, liquidity for firms, and trade finance.

The World Bank is coordinating with the IMF and International Energy Agency on global spillovers. Countries in emerging markets have sought help as commodity shocks strain budgets and logistics.

The conflict has inflicted heavy casualties, with Iranian reports citing thousands dead, including civilians, in strikes on schools and hospitals. U.S. losses include 15 soldiers killed, while regional allies report dozens more. Iran's proxies, including Hezbollah and the Houthis, have intensified attacks, complicating de-escalation.

Economists warn of broader risks, including slowed global growth and persistent inflation from energy and food price surges. President Trump addressed the nation today with an update, as stocks fluctuated on ceasefire speculation.

The World Bank emphasized safeguarding economic progress amid the uncertainty, with no clear end to hostilities in sight.