The World Bank warned in a new report that oil prices could rise and be pushed to “uncharted waters” if the conflict between Israel and Hamas expands further in the Middle East region.

As the fear of an escalation of the conflict rises, the World Bank’s Commodity Markets Outlook presents scenarios where oil and food prices could rise.

Israel is now entering Gaza and Hamas is calling for assistance from its regional allies, including Hezbollah in Lebanon, a militant party backed by Iran.

The World Bank predicts that if the conflict does not escalate, oil prices would likely go down from $90 a barrel to around $81 next year, but if there was a “medium disruption” in oil production like the one experienced during the Iraq war, the global oil supply of around 100 million barrels a day would decline by 3 or 5 million barrels per day and increasing prices by 35%.

If a “large disruption” scenario occurs like the Arab oil embargo of 1973, the global oil supply could decrease by 6 to 8 million barrels per day and increase prices to $140 to $157 a barrel.

Oil prices could have a strong negative effect on food prices, affecting developing countries the most.

Both oil and food prices have been affected this year by Russia’s invasion of Ukraine, but a further escalation of the Israel and Hamas conflict could push the prices even higher.