Global EV uptake expected to accelerate as Iran war causes worldwide petrol price hikes

2026.03.18 10:50 Employees work on an electric vehicle (EV) production line at the Volkswagen Anhui factory in Hefei, Anhui province, China, as the Iran war pushes up petrol prices and global EV uptake is expected to accelerate. Photo: Reuters Turbulence in the global oil market caused by the war in Iran revealed a quiet shift that could reshape global energy security: the rapid rise of electric vehicles. Global uptake of electric vehicle fleets has led to avoided oil consumption rising to the equivalent of 70 per cent of Iran’s exports in 2025, according to a new report. Last year, EVs worldwide saved 1.7 million barrels of oil consumption per day. During the same timeframe, Iran exported 2.4 million barrels of oil through the Strait of Hormuz, according to an analysis by the London-based energy think tank Ember. “Electric vehicles are increasingly cost-competitive with petrol cars. Oil volatility means EVs are a common-sense choice for countries wishing to insulate themselves from future shocks,” said Daan Walter, a principal at Ember. The economic benefits were palpable for places with high EV penetration: China, where more than half of new car sales were EVs in 2025, could save over US$28 billion a year in avoided oil imports with its current EV fleets, with oil at $80 per barrel. Europe, where EVs accounted for 26 per cent of car sales in 2025, could save about US$8 billion annually, according to the report. Recent turmoil in the Middle East showed that oil price disruptions affect oil importers and exporters alike, as prices are set globally. The price increase affected Asia, which relies heavily on Gulf countries for its oil imports, as well as the US, which is an oil producer. According to the report, petrol prices in Texas rose by more than 25 percent since the war started. This increase was larger than those in oil-importing countries like the UK and France, despite Texas being one of the world’s largest oil-exporting regions. Switching from imported oil t

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