Strait of Hormuz Closure Drives Fuel Price Volatility, Impacts New Zealand
Auckland motorists are already experiencing the effects of escalating tensions in the Middle East, with some Gull petrol stations reporting fuel shortages during a promotional period. This comes as the ongoing US-Israeli conflict with Iran leads to disruptions in global oil supply, primarily due to Iran’s actions regarding the Strait of Hormuz – a critical waterway for global energy transport.
The Strait of Hormuz: A Chokepoint in Crisis
The Strait of Hormuz, a narrow passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, is a vital artery for global oil shipments. Approximately 20% of the world’s oil passes through this strategic chokepoint according to Gulf News. Recent escalations in the conflict, triggered by US-Israeli strikes on Iran in February, have prompted Iran to effectively close the Strait, significantly impacting oil prices and global supply chains.
Impact on New Zealand Fuel Prices
The closure of the Strait of Hormuz has already begun to push up global oil prices. Brent crude, the international benchmark, rose 9.2% to $100.46 a barrel on March 13, 2026. Analysts warn that a prolonged closure could see prices surge to $150 per barrel as reported by 1News. This increase is directly impacting fuel costs for New Zealanders.
Gull Petrol Stations Experience Supply Issues
Several Gull petrol stations in Auckland experienced temporary fuel shortages on March 13, 2026, coinciding with a 14-cent-per-litre discount promotion. Stations at Onehunga, Greville Road, Henderson, Torbay, Takanini, and Takapuna reported running out of 91 and 95 octane fuel at various times throughout the day. Customers reported finding fuel nozzles “out of order” and prepaid fuel being refunded due to unavailability as detailed by 1News.
Government and Industry Response
Finance Minister Nicola Willis has stated that she has been in contact with Gull officials, who have assured her that there are no issues with incoming fuel supply, attributing the shortages to high demand driven by the discount promotion according to 1News. Z Energy reported minimal impact on its supply network, stating that teams are working to manage increased demand. Energy Minister Shane Jones has urged New Zealanders not to panic, assuring them that the situation is being closely monitored.
International Efforts to Mitigate Disruption
The International Energy Agency (IEA), of which New Zealand is a member, has announced the release of a record 400 million barrels from stockpiles to aid stabilize the market. The United States has likewise indicated its willingness to escort oil tankers through the Strait of Hormuz, while France and other allies are discussing a joint mission to restore maritime traffic as reported by Gulf News.
Iran’s Stance and Future Outlook
Iran’s new supreme leader, Mojtaba Khamenei, has indicated that the country will continue to retain the Strait of Hormuz closed as leverage against the US and Israel. The duration of the closure and the potential for further escalation remain uncertain, leaving global energy markets vulnerable to continued volatility.
New Zealand, heavily reliant on imported oil, will continue to monitor the situation closely and assess the need for further measures to ensure energy security.