EV demand is getting a boost from the Iran war — just as auto giants pivot back to combustion engines

In this article STLA Follow your favorite stocks CREATE FREE ACCOUNT An electric vehicle is left to charge at a charging station in Tehran on February 23, 2026. Atta Kenare | Afp | Getty Images The sprawling Middle East crisis is expected to spur drivers to abandon traditional internal combustion engine vehicles in favor of EVs, analysts told CNBC, although early evidence suggests this will be a gradual gearshift. The Iran war has severely disrupted oil exports through the strategically vital Strait of Hormuz, which typically carries about a fifth of the world's oil and liquified natural gas . It has underlined the extent to which the world remains deeply reliant on fragile fossil fuel trade routes, while surging oil and gas prices have jolted energy markets and triggered widespread inflation fears . Various car-selling platforms in the U.S. and Europe have reported a sharp increase in consumer interest for EVs since the war began in late February. The burgeoning trend comes even as a large chunk of the legacy car industry pivots back to internal combustion engine vehicles. Autotrader, an online vehicles marketplace, reported on March 26 a 28% jump in inquiries about buying a new EV and a 15% increase in inquiries about buying a used one, since the war in Iran started on Feb. 28. EV specialist Octopus Electric Vehicles said on March 25 it had seen EV leasing inquiries rise 36% since the start of the conflict. But U.S. automakers Ford Motor , General Motors and Jeep owner Stellantis have all reversed course on EV strategies , booking tens of billions of dollars in combined write-offs and restructuring costs, in part due to lackluster consumer demand and shifting political landscapes. It is indeed quite frustrating how we again talk about EVs as if we didn't know that this is the structural measure to wean our transport system off oil. Julia Poliscanova senior director for vehicles and e-mobility supply chains at Transport & Environment Steffen Michulski, senior consu...