What are the potential economic impacts, if any, on New Zealand of an escalation of conflict involving Iran?

Answer

Developments will impact the New Zealand economy through several channels, including trade (particularly through higher oil prices and disruption to trade flows), financial markets, and heightened uncertainty. The scale and duration of conflict, and its resulting impact on economic activity and medium-term inflation, are likely to remain uncertain for some time. The longer the duration of the conflict and the more it impacts supply chains, the greater the impact on inflation and negative impact on GDP.