The World Meteorological Organization (WMO) has confirmed that El Niño has developed and is set to intensify rapidly into a strong climate event between July and September.
The agency warned that this rapid ocean warming significantly increases the probability of extreme weather events globally, including severe droughts, flooding, and heatwaves.
The WMO’s assessment marks a shift from monitoring to active warning, with officials expressing concern that projections indicate a period of intense climatic stress.
The organization highlighted that the coming three months are critical, with the potential for widespread disruption to food security and infrastructure as weather patterns become more volatile.
For markets, the escalation of El Niño introduces tangible risks to agricultural commodities and energy sectors.
Historical El Niño events have often led to supply constraints in key crop-producing regions, potentially driving up prices for grains and soft commodities.