A significant focus of this Report is on the financial stability impacts of the conflict in the Middle East. Global events of this nature affect the New Zealand financial system through several key channels, including trade, financial markets and cyber risk. • Trade: Higher oil prices and broader economic impacts, partly driven by elevated uncertainty, can affect the ability of households and businesses to service debt. The sectors most immediately impacted are transport, parts of the primary sector and chemical manufacturing. If fuel shortages were to occur domestically, they would intensify the economic impacts. (full story)