The Iran conflict has sent fuel prices rocketing, fuelling a surge in interest for electric vehicles even as Detroit’s giants rethink their green strategies.
BloombergNEF’s March 2026 report shows global petrol costs up 45 per cent since late February clashes near the Strait of Hormuz, which handles 20 per cent of seaborne oil. The International Energy Agency’s April Oil Market Report cautions that Brent crude could top $120 per barrel with ongoing disruptions, laying bare fossil fuel supply fragilities.
This squeeze is shifting buyer minds. Reuters data from 2 April reveals EV searches climbing 30 to 40 per cent in March on platforms like AutoTrader UK and Cars.com. UK firm Octopus Electric Vehicles noted a 36 per cent jump in leasing enquiries, while U.S. site CarGurus saw 22 per cent more EV-petrol comparisons.
Yet Ford, GM, and Stellantis have trimmed $25 billion from EV plans since January, per SEC filings, favouring hybrids amid soft demand, as Ford CEO Jim Farley explained in March.
JATO Dynamics consultant Steffen Michulski says high-mileage drivers now find battery EVs more appealing with soaring petrol bills, offering energy independence—though economic headwinds loom.
“To shorten and summarize it: Yes, elevated oil prices and the renewed focus on energy security are likely to provide a mid term boost to BEV demand,” Michulski told CNBC by email. “But this is best understood as an incremental shift rather than a sudden market wide acceleration. Electricity price risks, technological progress on the combustion side, and general economic uncertainty all act as counterweights,” he added.
Cox Automotive’s Erin Keating warns change will be gradual; U.S. Q1 EV sales dropped 28 per cent to 212,600 units at $55,300 average, versus $48,768 for others, hampered by chargers and range fears. Hybrids claimed 26 per cent of sales, led by Toyota.
Edmunds.com observed: “Fuel prices have long influenced how drivers think about their next vehicle because they are one of the most visible costs of car ownership. But whether the latest spike translates into meaningful shifts toward electrified vehicles may depend less on the price of gasoline itself and more on how long consumers expect fuel costs to remain elevated.”
Europe eyes faster gains via REPowerEU’s 30 million EV target, with Transport & Environment noting 8 million current EVs saving €3 billion yearly. “It is indeed quite frustrating how we again talk about EVs as if we didn’t know that this is the structural measure to wean our transport system off oil,” said Julia Poliscanova.
Asia, from Vietnam to Indonesia, surges with cheap Chinese models. “We’re likely to see an even faster shift in some of these economies away from oil,” she added. Repairs may drag to 2028, per IEA.