Iran War Sparks Global Energy Panic as Electric Vehicle Demand Surges Worldwide
SYDNEY — Until recently, Rosco Jewell sold about one used electric vehicle every month at his Sydney dealership. But in the weeks since the United States and Israel launched their war on Iran, his business has transformed dramatically — he’s now shifting a second-hand EV roughly every two weeks.
“It is now getting very hard to find used EVs to buy in the $20,000 to $50,000 range. And we’ve also seen prices increase by 10 to 15 percent — in some cases, 20 percent as well,” the Sydney-based businessman told Al Jazeera.
Global EV Sales Surge
As the Middle East conflict continues to drive petrol and diesel prices worldwide, demand for electric vehicles has been surging in numerous countries.
Australia: Battery EVs accounted for 14.6% of total vehicle sales in March, nearly double the proportion recorded during the same month in 2025, according to the Federal Chamber of Automotive Industries. David Smitherman, CEO of BYD distributor EVDirect, which manages 90 of the Chinese automaker’s showrooms, said he has seen a sharp uptick in inquiries expected to translate into sales. “We’ve just seen a lot of people come into the stores, obviously concerned about the price of fuel and their ability to control their own transport needs,” he said.
Vietnam: Local EV brand VinFast reported a 127% rise in year-on-year sales in March.
Japan: EV sales nearly tripled year-on-year last month.
South Korea: Domestic EV purchases surged by 172%.
China: Chinese manufacturers reported an 82.6% rise in month-on-month EV sales in March, according to the China Automotive Dealers Association.
United States: US EV sales topped 82,000 units last month, down by a quarter year over year but up by more than 20% from February, according to Cox Automotive.
Europe: France recorded a three-fold increase in new Tesla registrations, while Norway, Sweden, and Denmark reported similar surges for the EV brand.
The Second Fossil Fuel Shock
Euan Graham, an analyst at the energy think tank Ember, said the Iran war has accelerated a trend of growing EV adoption in emerging markets, mirroring patterns seen after Russia’s 2022 invasion of Ukraine.
“We’re now in a period in the 2020s where we’ve seen two fossil fuel shocks, one after the other,” Graham told Al Jazeera. “What usually happens, based on past examples, is countries look for alternative solutions, and in the 2020s, there are increasingly competitive alternative solutions, and EVs are one of them.”
“So I would really expect this to be a kind of permanent shift in the pace of EV adoption in a number of countries,” he added.
Reshaping the Global Auto Industry
Analysts say the energy crisis triggered by the Iran war is reshaping global automotive consumption patterns. In 2025, the global EV market had faced a slowdown due to reduced subsidies and insufficient charging infrastructure. But rising fuel prices have fundamentally changed consumers’ cost calculations — in many countries, the per-kilometer cost of driving an EV is now significantly lower than that of a petrol vehicle.
This demand shift is reshaping global automotive supply chains. Chinese EV manufacturers, with their competitive pricing and diverse product offerings, have emerged as the primary beneficiaries of the surge. BYD, NIO, and other Chinese brands are expanding their market share across Southeast Asia and Australia.
Meanwhile, traditional automakers are facing mounting pressure to accelerate their electrification timelines in response to this geopolitically driven energy transition.
Source: Al Jazeera, Bloomberg