WELLINGTON, April 23 – New Zealand's economic recovery is facing a delay due to rising fuel prices sparked by the ongoing conflict in Iran, Finance Minister Nicola Willis announced on Thursday. While acknowledging the setback, Willis emphasized that the nation's economic trajectory remains positive and hasn't been fundamentally altered.

The recent oil price surge, a direct consequence of escalating tensions in the Middle East and specifically the Iran conflict, has significantly impacted New Zealand's fuel costs. This increase is expected to dampen consumer spending and potentially slow down business investment, contributing to the projected delay in the overall economic recovery.

Minister Willis addressed concerns about the potential long-term effects of the situation, stating that the government is closely monitoring developments and prepared to take necessary measures to mitigate any significant adverse impacts. However, she cautioned against overreacting, stressing that New Zealand’s economy has demonstrated resilience in the face of previous global economic challenges.

The government’s current economic forecasts will be reassessed in light of the evolving situation. While specific details of any adjustments are yet to be released, Willis indicated a commitment to supporting New Zealand businesses and households through this period of uncertainty. The focus remains on maintaining a stable economic environment and fostering sustainable growth, despite the temporary headwinds presented by the Iran-related oil shock.