The New Zealand dollar extended its decline, slipping to $0.586, as tensions in the Middle East flared again, dampening risk appetite. The US and Iran exchanged fire in the Persian Gulf on Monday, with the UAE also drawn into the situation, raising fresh doubts over the stability of a four-week ceasefire. The escalation followed President Donald Trump’s announcement of a plan to restore transit through the Strait of Hormuz and assist stranded vessels in exiting the region. Meanwhile, investors are now turning their attention to New Zealand’s first-quarter jobs report due on Wednesday for fresh clues on the economy’s health amid the energy shock from the Middle East conflict. RBNZ board member Prasanna Gai said that the model of the Strait of Hormuz disruption does not suggest a reflexive tightening bias, although it has raised the neutral rate.