Fuel Price Hikes After Iran War Boost Interest in EVs

The escalating conflict involving Iran has triggered significant volatility in global energy markets, leading to a sharp rise in gasoline prices that is pushing consumers toward electric vehicles and hybrids. Since the war began on February 28 with the bombing of Iran by Israel and the United States, disruptions in the Strait of Hormuz have threatened approximately 20% of global oil supplies. In the United Kingdom, used electric-car dealers are experiencing a surge in demand. Martin Miller, owner of EV Experts near London, reported his busiest Saturday on record just one week after the conflict started. > "We're turning cars very, very quickly." Miller noted that his staff has been aggressively purchasing inventory at auctions to keep up with customers who fear that petrol prices will continue to climb. British government data indicates that as of March 16, average gasoline prices per liter have risen 7% since the start of the war. The impact is also being felt across the European Union, where prices have risen 8% according to the European Commission. In Germany, the online car dealer MeinAuto reported a 40% increase in electric vehicle-related traffic since the conflict began. A survey of 1,164 people in Germany conducted by Carwow found that 48% of respondents believe spiking fuel prices will influence their decision to consider an electrified vehicle. In the United States, the average price for a gallon of gasoline has risen 27% to $3.72. While immediate shifts in new car shopping patterns are often slow, experts believe psychological milestones play a major role. Kevin Roberts, director of economic and market intelligence at CarGurus, Inc., pointed to the $4 per gallon threshold as a potential tipping point. This level previously drove significant interest in electric models during the 2022 oil shock following the invasion of Ukraine by Russia. The trend extends to Southeast Asia, where Vietnam has seen gasoline prices jump 50% since the start of the war. In response, VinFast Auto Ltd. has begun offering discounts on electric cars and scooters to attract buyers looking to escape fuel price volatility. Meanwhile, observers in India and other major regions are closely monitoring the situation as global supply chains remain under pressure. Despite the growing interest, some analysts remain cautious about a full-scale transition in the American market. Electric vehicle sales accounted for only 7.7% of new-car sales last year, and the expiration of federal tax breaks has cooled demand. Stephanie Valdez-Streaty, director of insights at Cox Automotive, suggested that while fuel prices are a factor, broader economic concerns like inflation and tariffs are also weighing on consumers. > "Unless you really need a car right now, you might hold off."