The war in Iran and the effective closure of the Strait of Hormuz have sent oil prices past US$100 a barrel – and Kiwis flocking to fill up. Petrol just hit $3 a litre and some stations have reported running dry.
In response to about 20% of the world’s oil supply being shut off in just a few days, the International Energy Agency announced its largest-ever co-ordinated reserve release of 400 million barrels. But analysts warn oil could reach US$150 ($256) a barrel if the strait stays closed.
For a country that imports every drop of its petrol, diesel and jet fuel, this is not only a problem, it’s a hard reminder New Zealand has failed to mitigate such strategic vulnerability.
Since Marsden Point stopped refining oil in 2022, New Zealand has imported all its refined fuel, mostly from South Korea and Singapore. Those refineries rely on crude oil shipped through the waters now blocked by Iranian drones.
