TL/DR –
Iran is suspected of sinking two container ships in the Gulf, causing instability in shipping through the Strait of Hormuz and contributing to rising petroleum prices. Higher petroleum prices and conflicts in the Middle East have prompted many countries to adopt electric vehicles (EVs), saving approximately $20 billion in fuel costs since February 2026. Increased EV usage is particularly evident in China, the EU, and several other countries, including India and Brazil, which have surpassed the US in battery-electric vehicle sales share; the US fell behind due to budget cuts in green energy investments.
Iran’s Suspected Attacks on Container Ships and High Petroleum Prices Drives Global Shift to Electric Vehicles
In a recent development, Iran has been accused of sinking two container ships in the Gulf, marking the second such incident. This event, coupled with the ongoing conflicts in Saudi Arabia, Yemen, Ukraine, and Russia, has caused a significant increase in petroleum prices.
The steep petroleum prices, further exacerbated by the aggressive war tactics employed by Netanyahu and Trump against Iran, have led several countries to adopt electric vehicles (EVs) as an alternative. According to the Ember energy consultancy, EV adoption has so far resulted in a saving of $20 billion in fuel costs since the outbreak of the war on February 28.
China, the global frontrunner in the manufacture and sale of electric vehicles, witnessed savings of $14 billion from March to August 2026. The European Union, consisting of 27 countries, saved $3.1 billion during the same period.
US Misses Out on Savings Due to Budget Cuts in Green Energy Investments
Unfortunately, the United States failed to benefit from these substantial savings. This is primarily due to the summer 2025 Big Ugly-Ass budget bill by Trump, which drastically cut green energy investments that were an integral part of Joe Biden’s Inflation Reduction Act, leading to increased price inflation.
As a result, 15 countries, including India and Brazil, now surpass the US in terms of market share for battery-electric vehicles. Despite having a nominal GDP per capita of only $2,813 – significantly less than the US’s $94,430 – India has outpaced the US in the adoption of EVs.
Global Increase in Battery-Electric Vehicle Sales
Excluding the outliers of China and the US, battery-electric vehicle sales have seen an impressive increase of 48% across 59 surveyed countries from March to August of 2026. Including China and the US, and considering a larger timeframe of the first eight months of the year, battery-electric vehicle sales show an 11% year-over-year increase, whereas sales of both hybrid and gasoline cars have declined.
In 2026, 18% of new car sales worldwide were battery-electric vehicles, an increase from 16% in the previous year.
Country-Specific Initiatives to Boost EV Sales
Several countries have implemented policies to boost EV sales, particularly in light of the negative economic impact of surging petroleum prices. South Korea is one such example, where EV sales have risen by 74.8% in the first nine months of 2026. Gasoline car sales in South Korea now constitute less than a third of new vehicle purchases, marking a 19% decrease compared to the previous year.
France has also seen a considerable rise in EV sales, with electric vehicles now accounting for 60% of all Renault cars sold. In Vietnam, the domestically-produced VinFast EV alone has captured about 42% of the country’s car market. By the end of August, EVs made up 51% of new car sales in Vietnam, according to Ember.
Despite a long war between the US and Vietnam based on the premise that capitalism would foster progress while communism would lead to backwardness, Vietnam is now ahead of the US in green transport adaptation.
In Norway, where battery-electric vehicles already accounted for 95% of new car sales, the figure has now risen to 98%.
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