Online searches for electric and hybrid cars in the US have surged following a sharp rise in gasoline prices linked to the conflict with Iran. The average national price of gas reached $3.90 per gallon on Friday, the highest level in nearly three years, driven by rising global oil costs after US and Israeli bombing of Iran and the closure of the Strait of Hormuz, a key oil shipping route.
Car-buying platform CarEdge reported a 20% increase in searches for electric vehicle (EV) models since the attack on Iran began three weeks ago. Justin Fischer, an automotive analyst at CarEdge, said the spike started within 48 hours of the war beginning and is directly connected to the news. He warned that if higher gas prices persist for a month or more, the numbers will grow further.
Jessica Caldwell, head of insights at Edmunds, noted that rising gas prices are at the forefront of buyers' minds, prompting them to consider how to avoid such fluctuations. She observed that EVs have become a conversational point, with EV drivers sharing memes about watching others worry about fuel costs. Used EVs, such as preowned Teslas, Chevy Equinoxes and Nissan Leafs, are becoming affordable for many Americans, with decent options available for under $25,000.
Hybrid cars are also expected to see strong demand among those concerned about going fully electric without sufficient charging infrastructure. Fischer predicted a huge spike in hybrid sales. However, new EVs remain expensive compared with petrol cars, and EV owners are disproportionately wealthy. Last year, only 7.8% of all car sales in the US were electric, down slightly from 2024.
The Trump administration has rolled back fuel efficiency standards and halted separate standards in California, with Attorney General Pam Bondi suing the state over what she called oppressive EV mandates. Despite this, electric cars are gaining traction globally, accounting for one in five new sales worldwide. In Norway, just seven traditional petrol cars were sold in January.
