Kiwis wake to spike in petrol prices amid fresh United States attacks on Iran
Petrol prices in New Zealand have spiked following U.S. military strikes on Iran and subsequent threats to shipping in the Strait of Hormuz. Economists warn that persistent oil price shocks could complicate inflation control efforts by the Reserve Bank.
Why it matters
Geopolitical instability in the Middle East continues to pose a direct risk to global energy costs and domestic inflation targets in import-dependent nations.
Motorists awoke this morning to petrol prices at the pump spiking about 10c a litre in some places after the United States launched a fresh wave of attacks on Iran.
President Donald Trump announced the US would reinstate its blockade of Iranian ports while vowing to charge a 20% tariff on all cargo shipped through the Strait of Hormuz.
ASB senior economist Mark Smith said market reaction had been “reasonably benign”.
“We’ve seen about a 10% jump in oil prices. The levels are still reasonably low … in the scheme of things … not as high as it could have been.
“I think probably the key thing is how long is this going to last for?”
Smith said Brent crude was around US$83 ($143.6) a barrel, well down from the US$110-$120 seen in April.
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