US-Iran Strikes Send Oil Prices Briefly Soaring
Oil prices rose to their highest level in nearly six weeks after renewed US and Iranian strikes. However, the gains were short-lived as prices pared back to around 0.10-0.30%. The US struck approximately 100 Iranian military and maritime targets, including two state-owned tankers, under a new 'tanker-for-tanker' policy. Iran's retaliation was largely intercepted.
US forces reportedly intercepted anti-ship missiles and drones, while Trump said Washington now has near-total control over the key shipping route. Despite the latest exchange of fire, around 40 vessels passed through the Strait of Hormuz.
The Reserve Bank of New Zealand raised its OCR by 25 basis points in response to CPI inflation of 4.1% and persistent risks related to energy prices. The bank expects headline inflation to return to its 1-3% target range by mid-2027, allowing it to tighten policy gradually rather than aggressively.