How the War in Iran is Contributing to Demand for EVs

With crude oil at US$113.53 per barrel, prices for traditional fuels, such as petrol, have risen dramatically around the world. 

The cost of running an EV is expected to remain significantly lower than operating an ICE vehicle during the oil crisis caused by the US and Israel's war with Iran. 

This war has shut down trade through the Strait of Hormuz, the world's most active oil shipping channel.

Google Trends shows that models of EVs and searches for used EVs have hit a high since the war on Iran began on 28 February.

Data from Transport and Environment (T&E) anticipates that EVs will be cheaper to drive during the energy crisis. 

Lower costs for EVs

According to data from T&E, in the current climate of high oil prices, driving a petrol car is expected to cost around US$162 per month, compared to US$76 for an EV. 

The expected crisis premium would add US$44 per month for petrol cars but only US$8 for EVs, meaning petrol drivers are expected to be five times more exposed to energy price shocks. 

Jan Rosenow, Professor of Energy and Climate Policy at Oxford University, said in a post on LinkedIn: “Electric cars are expected to be far cheaper to drive during the coming energy crises. In these times of high oil prices, driving a petrol car in Europe is expected to cost around €140 ($162) per month, compared to €65 ($76) for an EV."

T&E suggests that a weaker automotive package for EU electrification targets could increase oil imports by 640 million barrels between 2026 and 2035, costing Europe €45bn (US$52bn) in additional oil import expenses.

Sales of EVs

According to data from the SMMT, EV registrations are up in the UK. February 2026 saw 90,100 total registration in EVs, compared to 84,054 in the previous year.

McKinsey predicts that EV uptake is likely to continue to grow across regions. In China, 45% of respondents to a survey state that their next car will be a BEV; this compares with 23% in Europe and 12% in the United States.

However, the growth in the sector has not been fast enough for some manufacturers who cite less than anticipated demand from consumers and ongoing regulatory uncertainty in the US and across the world as reasons for cancelling or adjusting EV releases and sales targets.

BMW, Porsche, Rolls-Royce, Ford and Mercedes are among some manufacturers who have adjusted their production of EVs in recent times. 

EV interest since the war began

Google Trends has shown that searches for models of EVs and for used EVs have hit a high since the war on Iran began. Searches for specific models and brands also went up with ‘chevy ev’ and ‘equinox ev’ both rising more than 30% in the US. 

Consumers may have taken note that costs for charging electricity remains far lower than costs for petrol or diesel.

In a crisis that has caused surging prices, this matters even more. 

If traditional fuel prices remain as high as they are, many more consumers may look to make the shift from ICE to EV, driven by rising fuel costs.