They see the net impact of an energy shock as being more serious for New Zealand. “A disruption to Iranian production only could see the price of oil rise another US$25 per barrel to around US$100,” Westpac economists said. And a disruption of three or more months could see the price of Brent oil rise to US$185 per barrel, they said. “Reduced global trade volumes could dampen New Zealand activity and reduce inflation pressure (all else equal),” he said. “However, it is exactly under these circumstances that we’d expect the NZ dollar to soften, acting as a shock absorber.

Source: New Zealand Herald March 04, 2026 05:00 UTC