Global EV demand surges as fuel prices climb amid Iran conflict

Published 27 Apr, 2026 11:41am 2 min read

A rise in fuel prices caused by the ongoing US-Israeli war on Iran has triggered global demand for electric vehicles (EVs), with sales rising sharply across major markets as consumers seek cheaper transport alternatives, a media report said.

In Australia, used EV dealer Rosco Jewell said sales on his platform have doubled in recent weeks, while prices for second-hand EVs have increased by 10 to 20 per cent due to tight supply and growing demand.

According to a report in Al Jazeera, similar trends are being seen globally.

China reported an 82.6 per cent rise on a month-on-month basis in EV sales in March, while US sales rebounded from earlier declines, rising more than 20 per cent from February.

Strong growth was also witnessed in Vietnam, Japan, South Korea and parts of Europe, including increased registrations of Tesla vehicles.

Industry analysts say the surge reflects a broader shift driven by repeated energy shocks, including the Russia–Ukraine war and now tensions involving Iran, which have pushed consumers and governments towards alternatives to fossil fuels.

Quoting analysts, the report said the pattern may mark a longer-term structural change in transport, with EV adoption expected to accelerate if high fuel prices persist.

In Australia, where around 80 per cent of petrol is imported, the demand for electric vehicles has also spiked amid concerns over fuel supply.

Dealers report surging inquiries and rapid stock depletion, with some buyers switching from diesel vehicles to electric models, the report added.

In Australia, state governments are stepping up support for electric vehicles, including new funding to expand charging infrastructure in places like New South Wales. At the same time, some federal tax incentives for EV buyers are under review, creating a degree of uncertainty around future support.

Experts say how quickly Australians switch to EVs will depend heavily on whether fuel prices stay high and how consistent government policy remains.

Even so, many drivers who have already made the switch say the biggest benefit is in everyday costs, with much cheaper running expenses and more predictable transport bills.

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