New Zealand faces rising fuel costs amid Middle East conflict
New Zealand could see higher fuel prices due to the ongoing conflict involving the United States, Israel, and Iran, according to a report from the Ministry of Foreign Affairs and Trade. The report highlights the risk of disrupted energy supplies from the Persian Gulf, which could impact global oil prices and New Zealand’s economy. Although New Zealand now imports refined petroleum from Asia, it remains exposed to shifts in global oil markets. The conflict has also affected international shipping and aviation routes, raising concerns about broader economic impacts.
What we know
- The New Zealand Ministry of Foreign Affairs and Trade warns that disruption in the Persian Gulf could push up global oil prices and fuel costs for New Zealand.
- Around 20 per cent of global oil supply passes through the Strait of Hormuz, making it a critical energy route.
- Brent crude futures have risen by more than US$12 a barrel earlier this year and increased by a further US$10 to over US$83 per barrel since the conflict began.
- On 28 February 2026, the United States and Israel launched large-scale strikes inside Iran, prompting retaliatory missile and drone attacks by Iran across the region.
- New Zealand exported $3.4 billion worth of goods and services to the Middle East in 2025, with dairy products accounting for nearly 70 per cent of that trade.
