Since President Trump launched the latest bombing campaign against Iran, the price of a gallon of regular gas in the U.S. has climbed by 20 percent. The spike in fuel costs has reportedly driven a surge in interest in electric cars.
Iran is currently blocking oil tankers in the Strait of Hormuz, through which roughly a fifth of the world’s oil flows, driving up gas prices in the U.S. to $4.29 a gallon, the highest level in nearly three years, Bloomberg reports.
Steven Cegelka, head of Ignition Dealer Services, a consultancy for car dealers, told Bloomberg that at around $4 a gallon, car shoppers start flocking to electric cars. At CarEdge, a car-buying platform, searches for electric vehicles were reportedly up 20 percent in the week following the initial attacks on Iran.
Edmunds, an online car-buying guide, has also reported an uptick in interest in EVs since the start of the conflict. Analysts say that if fuel prices stay high, “more shoppers could begin weighing fuel economy and electrification more seriously as they plan their next purchase.”
There is precedent for the surge in interest. After Russia invaded Ukraine in 2022, the price of gas in the U.S. rose to more than $5 per gallon, and sales of battery-powered vehicles rose by 66 percent that year, Bloomberg reports.
To cope with rising oil prices, the U.S. moved last week to tap its strategic petroleum reserve and temporarily ease sanctions on Russian oil. At the same time, the Trump administration announced that it is suing California over its high fuel standards, which it said amount to an electric vehicle mandate.
“Oppressive, expensive electric vehicle mandates drive up costs for American consumers and violate federal law,” said Attorney General Pam Bondi. She said the lawsuit “will make life more affordable for American consumers.”
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