NZ and Australian Businesses Report Higher Costs and Risks From Middle East Conflict
Sixty-eight percent of firms surveyed by the New Zealand Chamber of Commerce reported freight, fuel and insurance costs jumping by at least 15% over the past three months because of the Iran war. More than half said they have postponed 2026 investment plans.
The joint Australia-New Zealand business confidence report, released Friday, points to a deep imprint of the conflict on the region's firms. Container costs from Auckland to Sydney and from Wellington to Brisbane have risen 22% on average because of risk on the Suez and Hormuz routes.
Manufacturing, food exporters and retail are among the hardest hit. New Zealand dairy and meat exporters warned that shipping delays in Asian markets could cost contracts. Some Australian manufacturers said they have had to discount accumulated inventory in recent weeks.
RBA and RBNZ officials openly raised the possibility of revising inflation forecasts higher if the conflict drags on. The New Zealand finance minister said the government is working on a temporary cash-flow support scheme for small businesses.
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