EV News
The widespread adoption of electric vehicles (EVs) globally has led to substantial savings in oil consumption, averting the need for approximately 1.7 million barrels of oil per day in 2025. This figure represents a significant portion, equivalent to 70 percent, of Iran’s oil exports during the same year, according to a recent report.
The ongoing geopolitical situation in Iran and across the Middle East has intensified concerns over global oil supply. With the Strait of Hormuz, a critical maritime chokepoint, remaining closed to certain nations, international oil prices have seen a sharp increase, leading to panic buying and fuel shortages in various regions, including parts of Australia.
The Strait of Hormuz is a vital artery for global energy trade, accounting for approximately 29 percent of the world’s oil supply. Iran’s strategic decision to close it to perceived adversaries aims to exert maximum economic pressure and increase the cost of the ongoing conflict.
EVs Emerge as a Crucial Alternative
The disruption caused by the Strait of Hormuz closure has underscored the growing importance and potential of electric vehicles as a viable alternative to fossil fuels in the transport sector. The data from the report by the global energy think tank Ember highlights this crucial role.
Ember’s analysis indicates that the global EV fleet’s avoidance of 1.7 million barrels of oil consumption per day in 2025 is a substantial figure when compared to Iran’s reported exports of 2.4 million barrels per day through the Strait of Hormuz.
Oil Vulnerability and Economic Impact
Daan Walter, a principal at Ember, emphasized the critical role of oil in the global economy, stating, “Oil is the Achilles’ heel of the global economy. In particular, Asia’s oil vulnerability has been exposed by the current crisis.”
With a significant majority of the global population residing in countries that import oil, Iran’s actions are demonstrably impacting global economic stability. The report notes that global net oil importers spent an estimated $1.7 trillion in 2024. Furthermore, a $10 increase in the price per barrel of oil is projected to escalate global net import costs by approximately $160 billion annually.
The ripple effects of oil price volatility are being felt even in major oil-producing nations. In Texas, a prominent oil-exporting region in the United States, gasoline prices surged by over 25 percent within the first three weeks of the conflict. This increase surpasses the rise seen in oil-importing countries like the UK and France during the same period.
Electrification as a Long-Term Solution
Ember suggests that a more rapid transition to electric vehicles for transport could significantly reduce global fossil fuel imports, potentially by a third, leading to annual savings of around $600 billion. This transition is increasingly feasible as electrification technologies are already available for over three-quarters of global energy demands.
The availability of abundant renewable resources, particularly wind and solar power, in most countries further supports the potential for widespread electrification. The current energy crisis in the Middle East may serve as a catalyst, prompting nations to accelerate their adoption of electric technologies.
Walter further commented on the evolving energy landscape: “Unlike the oil crises of the 1970s, there is now a better alternative. Electric vehicles are increasingly cost-competitive with gasoline cars. Oil volatility means EVs are a common-sense choice for countries wishing to insulate themselves from future shocks.”
EVs are already playing a role in mitigating the impact of oil price fluctuations. This is particularly evident in Asia, where the rapid growth of EV adoption has already begun to temper the increase in oil demand.
Global EV Adoption Trends
The report highlights a significant upward trend in EV sales globally. Currently, 39 countries have reported an EV sales share exceeding 10 percent, a notable increase from just 4 percent in 2019. Countries in Southeast Asia have seen particularly strong growth, with Vietnam, Thailand, and Indonesia achieving EV sales shares of 38 percent, 21 percent, and 15 percent, respectively.
In comparison, the European Union’s EV sales share stands at 26 percent, while the United States has reached 10 percent. China continues to lead the global market, with its EV sales share surpassing 50 percent in 2025.
Ember’s analysis, based on an oil price of $80 per barrel, indicates substantial cost savings for major economies. China is estimated to save over $28 billion annually in avoided oil imports, while Europe is projected to save approximately $8 billion.
Given that Asia relies on the Strait of Hormuz for 40 percent of its oil imports, Ember anticipates a further acceleration of EV adoption across the region as countries seek to enhance their energy security and economic resilience.