New Zealand shares fell on Thursday's close amid heightened geopolitical tensions between the US and Iran, leading to a further rise in safe-haven assets.

The S&P/NZX 50 Index fell 0.5% or 64.26 points to close at 13,348.61.

US President Donald Trump warned Iran on Wednesday that it must agree to nuclear talks or face a "far worse" US strike if it fails to do so, according to a Wednesday Reuters report. In response, Tehran warned it would retaliate against the United States, Israel, and any nations backing them, the report added.

The Federal Reserve kept interest rates unchanged on Wednesday, with Chair Jerome Powell citing a resilient economy and easing risks to both inflation and employment, an assessment that suggests borrowing costs may remain elevated for some time before any further cuts, according to a separate Wednesday Reuters report.

In domestic news, New Zealand recorded a goods trade surplus of NZ$52.2 million in December 2025, compared with a deficit of NZ$334.8 million in November 2025, Stats NZ data showed.

Also, the ANZ New Zealand Business Outlook fell to a net 64.1 in January, down from 73.6 in December 2025, retreating from a 30-year high, while expected own activity fell to 51.6 from 60.9, according to a report from ANZ Research.

Further, total new residential mortgage lending in New Zealand rose to NZ$14.07 billion in December 2025 from NZ$8.8 billion in November 2025.

In corporate news, a2 Milk Co. (ASX:A2M, NZE:ATM) said Kate Tidbury, group head of legal, will be promoted to chief legal officer, effective at the end of March.

ikeGPS Group (ASX:IKE, NZE:IKE) reported total revenue of about NZ$19.8 million for the nine months to Dec. 31, 2025, compared to NZ$18.6 million in the same period a year ago.