Mfat keeps ‘watchful eye’ as threats to Middle East transit routes increase
Wednesday, 28 January 2026
Kiwi importers and exporters appear to be taking the growing risk of further conflict in the Middle East disrupting access to overseas markets in their stride.
The Middle East Media Research Institute reported that the Iranian regime had threatened to close the Strait of Hormuz, which is vital for the region’s oil trade, as it braces for a possible US attempt to remove it from power.
Sherelle Kennelly, chief executive of New Zealand’s Customs Brokers and Freight Forwarders Federation, said the strait was not a key trade route for exporters and members had not raised any concerns with the federation so far.
But she noted overseas reports on Monday that Yemen’s Iran-backed militia, the Houthis, had posted a video suggesting they could resume attacks on commercial shipping in the Red Sea, which is the gateway to the Suez Canal and the fastest transit point between New Zealand and Europe.
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Previous attacks in the Red Sea, which was the scene of significant disruption in 2024, prompted some New Zealand exporters to divert shipping around the Cape of Good Hope.
Trade Minister Todd McClay said nothing had come across his desk so far, but he was mindful of the situation and the Ministry of Foreign Affairs and Trade (Mfat) was continuing to keep a “watchful eye on that part of the world”.
“Cast back about 1½ years ago, there was some disruption that added cost and delay for exporters, particularly getting up to Europe.
“We have put in place a number of agreements and had discussions with other countries around ‘sustainable supply’ and access,” he said.
The price of gold consolidated above US$5000 on Tuesday after breaching the price threshold for the first time on Monday on the back of the potential for action on Iran and as a US aircraft carrier group arrived in the region.
The US Air Force announced on Monday, US time, that it would be conducting a “multi-day readiness exercise” to demonstrate its ability to deploy, disperse, and sustain combat air power across the US Central Command area of responsibility, which covers the Middle East and parts of Asia.