The oil price shock triggered by the U.S.-Israel war on Iran is spurring a swift shift in global consumer behavior, as rising fuel costs drive renewed interest in electric vehicles and boost shares of Chinese automaker BYD.
Brent crude prices have surged more than 50% since the conflict began on February 28, climbing above $100 a barrel. The disruption of shipping through the Strait of Hormuz, which handles about a fifth of global oil supplies, has sharply increased gasoline prices worldwide. In the European Union, prices rose about 12% between late February and mid-March to roughly €1.84 per liter, while U.S. averages climbed to $3.98 per gallon, a 34% jump, according to AAA.
The spike is transforming consumer behavior across major markets. Used electric vehicle sales have jumped in Europe, with online platforms reporting record traffic. Norwegian marketplace Finn.no described an “electric car bonanza,” while France’s Aramisauto said EV sales nearly doubled in three weeks. Germany’s mobile.de reported a threefold increase in EV-related searches, and in the U.S., used EV sales climbed 29% year-over-year in February, according to Cox Automotive. Data from Edmunds showed EVs accounted for nearly a quarter of all car research on its site by mid-March, the highest in 2026.
Chinese manufacturers, particularly BYD, are seen as major beneficiaries. China’s exports of electric and plug-in hybrid vehicles more than doubled in the first two months of 2026, and BYD’s overseas sales rose 50% during that same period. Analysts say the company’s vertically integrated battery production provides a key cost advantage as oil prices climb.
However, the outlook remains uncertain. A potential resolution to the conflict could rapidly reverse market trends. Wood Mackenzie noted that higher electricity prices from LNG supply disruptions may offset some EV advantages, yet forecasts about 80 million new EVs sold globally between 2026 and 2030, calling the situation a “tailwind for EV adoption.”
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