Oil price shock for New Zealand far from over - Westpac economist
Westpac economist Kelly Eckhold warns that New Zealanders should expect continued high and volatile fuel prices due to ongoing geopolitical tensions in the Middle East. The conflict involving Iran and threats to shipping routes in the Red Sea are cited as primary drivers for the sustained price shock.
Why it matters
Persistent fuel price volatility impacts inflation and household spending power, creating economic uncertainty for consumers.
The oil price shock that hit New Zealand <a href="https://www.1news.co.nz/2026/03/21/petrol-costs-kiwisaver-in-an-uncertain-world-focus-on-what-you-can-control/">earlier this year</a> in the <a href="https://www.1news.co.nz/2026/03/07/week-after-week-petrol-hikes-as-iran-war-sends-oil-price-soaring/">wake of the Iran war</a> is far from over, and Kiwis may soon have to again fork out for higher petrol prices. <b>By Corin Dann of </b><a href="https://www.rnz.co.nz/news/business/781190/oil-price-shock-for-new-zealand-far-from-over-westpac-economist" target="_blank"><b>RNZ</b></a> That's the view of Westpac chief economist Kelly Eckhold, who has been a close watcher of the <a href="https://www.1news.co.nz/2026/07/15/fill-up-now-fuel-to-climb-again-amid-renewed-us-iran-conflict/">fuel crisis</a> as it has developed this year. On Thursday, the price of Brent crude oil hit a six-week high of US$96 (NZ$165) a barrel, as Iran and the US continued to exchange fire over control of the key oil route through the Strait of Hormuz.
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