Why the US-Israel-Iran War Has Led to a Boom in EV Demand

As tensions escalate in Iran, the consequences are being felt across the global energy landscape. Soaring crude oil prices are fuelling renewed interest in electric vehicles (EVs) as governments and consumers seek more stable and predictable energy options.

With Brent crude trading around US$113.53 per barrel, traditional fuel costs have surged internationally. The cost of powering internal combustion engine (ICE) vehicles has spiked, while the economics of running EVs remain comparatively stable.

The war has severely restricted movement through the Strait of Hormuz, a key artery for global oil shipments, intensifying pressure on energy markets.

According to Google Trends, online searches for EV models and used EVs have reached record highs since the conflict began on 28 February. Data from Transport and Environment (T&E) shows that EVs now hold a significant cost advantage in the current energy crisis.

Jan Rosenow, Professor of Energy and Climate Policy at Oxford University, says on LinkedIn about the data: “Electric cars are expected to be far cheaper to drive during the coming energy crises."

T&E data reveals that under existing price conditions, owning a petrol vehicle could cost around US$162 per month compared to US$76 for an EV. The crisis premium adds roughly US$44 per month to petrol costs but only US$8 to EV running costs – leaving traditional drivers five times more exposed to market fluctuations.

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 further warns that any weakening of EU electrification policies could deepen dependency on imported oil. It estimates that a reduced automotive package would increase oil imports by 640 million barrels between 2026 and 2035, costing Europe €45bn (US$52bn) in additional expenses.

EV sales respond to shifting energy economics

Demand for EVs has risen sharply in response to the volatile energy environment. SMMT figures show that registrations in the UK climbed to 90,100 in February 2026, up from 84,054 a year earlier.

Consulting firm McKinsey forecasts further growth across major regions, with 45% of Chinese consumers, 23% of Europeans and 12% of Americans saying their next vehicle will be battery-powered.

Nonetheless, some automakers have slowed expansion plans amid fluctuating demand and regulatory uncertainty. BMW, Porsche, Rolls-Royce, Ford and Mercedes have each adjusted EV production or delayed model launches in recent months.

Oil disruption drives consumer shift

Google Trends data shows a sharp rise in interest for EV models since the outbreak of war, with searches for ‘chevy ev’ and ‘equinox ev’ climbing more than 30% in the US.

For many consumers, the stability of electricity pricing compared to fossil fuels adds urgency to the case for electrification

As global oil markets remain volatile, the cost advantage of EV ownership becomes increasingly compelling.

If fuel prices stay elevated, a wave of consumers may transition from ICE to EV not only for environmental reasons, but as a pragmatic response to an uncertain and inflationary energy market.