Prime Minister Christopher Luxon delivered a pre-Budget speech in Auckland, setting the stage for the 2026 Budget which is now just over two weeks away. The timing of the address comes as the government grapples with significant economic challenges stemming from geopolitical tensions in the Middle East.

The upcoming Budget will be shaped by economic uncertainty arising from the ongoing conflict involving the US and Israel's war on Iran, which has created substantial disruption to global fuel supply chains through the strategically crucial Strait of Hormuz. This disruption to one of the world's most important oil transit routes threatens to impact New Zealand's economy through higher energy costs and broader inflationary pressures, making the Budget's fiscal settings particularly critical for managing these external shocks.