Gasoline Price Hike from Iran War Could Push Consumers Toward EVs, Hybrids

Carmakers, dealers and vehicle owners face angst and uncertainty at the pump as fuel prices rise.

Mar. 18, 2026 at 6:04am

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The rising price of gasoline due to the Iran war has triggered concerns for carmakers, dealers and vehicle owners, but it also presents an opportunity for electric vehicle (EV) dealers. EV dealers in the UK and Europe are seeing a surge in customer interest and sales as consumers worry about further increases in fuel prices. While the shift to EVs is more likely in Europe where EV sales are already higher, industry experts say a major move to EVs in the US is unlikely unless fuel prices reach $6 per gallon.

Why it matters

The 1970s energy crisis showed that oil price shocks can lead to structural changes in consumer car-buying habits, favoring more fuel-efficient vehicles. The current price hikes could accelerate the shift toward EVs and hybrids, especially in markets like Europe where government incentives are in place to promote electric vehicle adoption.

The details

EV dealer Martin Miller in the UK reported his busiest Saturday ever one week after the Iran war began, as customers worry about further gasoline price increases. In Germany, EV-related traffic on the online car dealer MeinAuto has increased by 40% since the start of the Iran war. In a survey of 1,164 people in Germany, 48% said spiking fuel prices would influence their decision to consider an EV or hybrid. Vietnamese EV maker VinFast is offering discounts on electric cars and scooters for people switching from gasoline vehicles.

  • The Iran war began on February 28, 2026 with the bombing of Iran by Israel and the United States.
  • As of March 16, 2026, average gasoline prices per liter in Britain were up 7% since the war began.
  • As of March 16, 2026, average gasoline prices in the European Union have risen 8% since the war began.
  • As of March 14, 2026, the average U.S. gallon of gasoline has risen 27% since late February, up to $3.72.

The players

Martin Miller

The owner of a used electric-car dealership southwest of London who has seen a surge in customer interest and sales since the start of the Iran war.

Zach Xavier

A customer in the U.S. who visited a used EV dealership in Richmond, Virginia to trade in a combustion-engine SUV for an electric one, and also purchased a second, smaller EV, saying "I'm trying to get in before everybody freaks out."

VinFast

A Vietnamese EV maker that is offering a 3% discount on electric cars and 5% on electric scooters for people switching from gasoline vehicles "amid volatility in global fuel prices."

Kevin Roberts

The director of economic and market intelligence at online marketplace CarGurus, who noted that the $4 per gallon threshold may be a tipping point for EV interest during the current oil shock.

Stephanie Valdez-Streaty

The director of insights at dealer-services group Cox Automotive, who said the rising price of fuel could hurt U.S. vehicle sales overall by adding to consumer uncertainty.

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What they’re saying

“Unless you really need a car right now, you might hold off.”

— Stephanie Valdez-Streaty, Director of Insights, Cox Automotive

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This price shock from the Iran war could accelerate the shift toward electric and hybrid vehicles, especially in Europe where EV sales are already higher and government incentives are in place. However, a major move to EVs in the US market is unlikely unless fuel prices reach $6 per gallon, as US consumers remain more sensitive to the upfront cost of EVs compared to their European counterparts.