The World Bank has issued a stark warning that El Niño could drive global food prices higher amid ongoing agricultural supply pressures. The weather phenomenon typically disrupts crop production through droughts and flooding in different regions.

Farmers are already facing elevated fertilizer costs, a challenge worsened by geopolitical tensions involving Iran. These combined pressures have left agricultural systems vulnerable heading into what could be a difficult growing season.

The bank projects that El Niño will likely push global food prices upward as key producing regions experience weather-related harvest disruptions. Commodity markets are particularly exposed given existing supply chain vulnerabilities.

Market participants are closely watching atmospheric patterns, as weather-driven price increases could add to broader inflationary pressures affecting consumers worldwide.