Someone asked me the question yesterday, my immediate answer was “I don’t know” as I don’t even know where to start talking about it.
The news out of the Middle East right now is a lot to take in, and you’re probably wondering what a conflict thousands of kilometers away has to do with your house in Pakuranga or your shop on the North Shore.

The short answer? Oil.

Iran sits right next to the Strait of Hormuz. Think of it as the world’s most important freightway, 20% of the world’s oil and gas has to drive through it. With tensions high, oil prices have already done a bit of a jump this week, hitting nearly $80 a barrel.

So, how does this hit the Kiwi wallet?

You’ve probably noticed the numbers on the local BP or Z sign creeping up. When fuel costs go up, everything else gets more expensive to move around.

The Reserve Bank has been trying to get inflation back into its happy place (between 1-3%). If high oil prices keep inflation sticky, they might be more hesitant to drop interest rates as fast as we’d like.

Geopolitics makes the stock market nervous. If you see a bit of red in your KiwiSaver balance this week, take a deep breath as market volatility is normal during global shocks.

If your mortgage is up for renewal soon, the wait and see game just got a bit more interesting. Whether you’re looking for a residential refix or a business loan, we’re here to help you filter out the noise and find a strategy that fits your actual life.

Stay safe.