Peters meets Rubio in Washington as Iran war fuel crisis bites New Zealand

Foreign Minister Winston Peters has met US Secretary of State Marco Rubio in Washington DC to press New Zealand’s case over the economic damage being inflicted by the ongoing US-Iran war, as fuel prices continue to rise and national diesel stocks fall to critical levels.

Peters told Rubio of the “significant negative economic impacts the conflict in the Middle East is having on New Zealand, and Pacific neighbours,” and “expressed New Zealand’s desire to see dialogue and de-escalation,” according to RNZ.

Rubio outlined US progress towards ending the conflict, and both ministers stressed the importance of international law in ensuring freedom of navigation through the Strait of Hormuz, which has been closed for more than a month following US and Israeli strikes on Iran. Rubio said Iran was violating “every law known” by striking commercial vessels in the Strait, describing it as “a big problem for the world.”

The talks also covered US-New Zealand bilateral defence and security, trade and tariffs, critical minerals cooperation, and the Pacific Islands Forum — which New Zealand is hosting next year. Peters extended an invitation for Rubio to attend.

Back home, Prime Minister Christopher Luxon has ruled out broad-based fuel relief such as cuts to fuel excise tax or road user charges — measures Australia has implemented. “We cannot alleviate the pressure for everybody, but we do have a framework around timely, targeted, temporary support,” Luxon said. “Seeking to alleviate that pressure for everyone would be unaffordable and irresponsible.”

Diesel prices have now exceeded $3.70 per litre, and national fuel stocks sit at just 17.5 days of supply, with 12 fuel ships waiting outside New Zealand’s exclusive economic zone. Federated Farmers has warned of a crunch if the conflict persists through winter, with August identified as the next critical pressure point for fuel demand.

The government has introduced targeted relief measures, including a temporary boost to the in-work tax credit to $50 per week for approximately 143,000 lower-income families, and a 30 percent increase in mileage rates for home and community support workers.

Finance Minister Nicola Willis, speaking earlier this week, acknowledged the weight of the situation. “Never have I felt so dependent on the actions and feelings of one administration and its leaders,” Willis told reporters.

Peters himself described the current global situation as “the most challenging New Zealand has faced in the past 80 years” ahead of his Washington trip.

Do you think the government is doing enough to help New Zealanders through the fuel crisis? Share your thoughts in the comments below.