Online searches for electric and hybrid cars in the US have increased by 20% since the start of the Iran conflict three weeks ago, according to CarEdge, a car-buying platform. This surge comes as the average national gas price hit $3.90 per gallon on Friday, the highest level in nearly three years, driven by rising global oil costs following US and Israeli bombing of Iran and the closure of the Strait of Hormuz.
“You saw that within 48 hours of the war starting a spike started – it is directly connected to that news,” said Justin Fischer, an automotive analyst at CarEdge. “If we see these higher gas prices dragging on for a month or more we will see bigger and bigger numbers.” Jessica Caldwell, head of insights at Edmunds, noted that gas prices are “at the forefront of buyers’ minds right now,” prompting increased online research into EVs.
Despite the spike in interest, it remains unclear if this will translate into sustained market share. The US lags behind other wealthy nations in EV sales and charging infrastructure, with sales hurt by a Republican spending bill that phased out Biden-era incentives. Trump has also rolled back fuel efficiency regulations, encouraging automakers to focus on SUVs and pickups. Ford, Nissan, and Honda have scaled back EV models in the US.
However, used EVs are becoming more affordable for lower-income drivers, with preowned Teslas, Chevy Equinoxes, and Nissan Leafs available for under $25,000. “We are now in an era where there are desirable, inexpensive EVs,” Caldwell said. “I expect they will be snapped up now.” Hybrid cars like the Toyota Camry and Rav4 are also expected to see a sales boost, as consumers wary of charging infrastructure consider them a safer option.
New EVs remain expensive, making up just 7.8% of US car sales last year, down slightly from 2024. The Trump administration has further stalled EV growth by suing California over its electric vehicle mandates. Globally, EVs account for one in five new car sales, with Norway nearly eliminating petrol car sales in January. “American automakers realize EVs are definitely the long-term strategy but they can make a lot of money in the short term with SUVs and pickup trucks,” Caldwell added.
