Fuel cost shock reality dawning on NZ

Here’s the six things that stood out to me in Aotearoa’s political economy today around housing, climate and poverty:

1. Iran launched missile and drone strikes on an oil port in the UAE and has threatened to strike any US Navy ships trying to escort tankers out of the Persian Gulf. Oil prices rose 6% to US$114/barrel on news the conflict has resumed¹.

2. The reality of the extended fuel crisis is dawning on the economy as second round inflationary effects start flowing into supply chains. The Post-$² reports this morning that the Interislander has doubled its fuel surcharge for trucks and Maersk has announced³ a 27% fuel surcharge for shipments to New Zealand.

3. Singapore’s PM Lawrence Wong warned PM Christopher Luxon and Finance Minister Nicola Willis during a visit to Singapore yesterday to sign a food-for-fuel security deal of at least another six months of fuel cost pain⁴.

4. Scoop of the day: Dialysis capacity has maxed out nationwide, 1News⁵ reported last night.

5. Deep-dive of the day: RNZ⁶ reports from inside the departure of Palmerston North Hospital’s last gastroenterologist.

6. Solution of the day: Solar panels and batteries have gone over the affordability tipping point in New Zealand, RNZ⁷ reports from Rewiring Aotearoa analysis.

Here is the presentation used above in the video available to paying subscribers, with more details in text and chart form below.

Fuel cost shock reality dawning on NZ

Iran's navy fired 'warning shots' at US warships in the Strait of Hormuz on May 4, state media said, after the American military sent cruisers into the Gulf as part of a plan to help trapped commercial vessels leave. Earlier, US President Donald Trump had announced a plan to guide ships from neutral countries out of the Gulf, saying it was a humanitarian effort to help their stranded crews. (Photo by AFP via Getty Images)

The conflict in the Persian Gulf that has produced the biggest global fuel price shock in over 50 years is escalating this morning, just as second round inflationary effects start flowing through our freight systems into our supply chains.