The Most Reverend Justin Welby said "this year, the skies of Bethlehem are full of fear rather than angels and glory" during a service at Canterbury Cathedral.
He also referred to conflict elsewhere including in Ukraine, saying "around the world, we are beset with violence".
And he talked about the "age-old sin" of antisemitism in the UK.
He compared the turbulent background of Jesus' upbringing with the struggles of children in the region today.
He said: "Today a crying child is in a manger somewhere in the world, nobody willing or able to help his parents, or her parents, who so desperately need shelter.