New Zealand links rising unemployment to Hormuz crisis

New Zealand has blamed the closure of the Strait of Hormuz and the resulting surge in global fuel prices for rising unemployment and inflation, according to media reports.

Foreign Minister Winston Peters said higher fuel costs had increased business expenses, affecting jobs across the country. In a post on X, he said the government had warned from the beginning of the Hormuz crisis that it would drive up both inflation and unemployment.

Peters said the situation highlighted the need for New Zealand to develop its own oil resources to strengthen energy security and reduce dependence on global supply disruptions.

According to official data from Statistics New Zealand, cited by Reuters, the country’s unemployment rate rose to 5.6 per cent in the second quarter, the highest level in a decade, while inflation climbed to 4.1 per cent, largely due to higher fuel prices. 

SKS