A military conflict thousands of miles away is reshaping how Americans think about what they drive. The US and Israeli bombing campaign against Iran has contributed to a significant jump in global oil prices, pushing the average American gasoline price to $3.90 per gallon — a level unseen since nearly three years ago. In response, a growing number of car buyers are looking seriously at electric vehicles for the first time.
Iran’s decision to close off the Strait of Hormuz following the military strikes has been central to the oil market disruption. The strait is one of the world’s most strategically important shipping routes, carrying roughly a fifth of global oil supplies. Its closure has tightened supply expectations globally and pushed up crude prices, with American drivers feeling the effects every time they visit a gas station.
CarEdge, which monitors car-buying trends, recorded a 20 percent rise in EV-related searches in the three weeks following the start of the conflict. The company’s analyst Justin Fischer said the link to the Iran war was clear-cut and immediate. Edmunds also saw a noticeable increase in EV research activity on its platform, with head of insights Jessica Caldwell noting that gas prices are always top of mind for buyers because they are so visible and hard to ignore.
The used EV market has emerged as a particularly relevant option during this period. Pre-owned Teslas, Nissan Leafs, and Chevy Equinoxes are now priced accessibly enough to attract buyers who previously could not consider electric vehicles. Caldwell noted that the availability of decent used EVs for under $25,000 marks a meaningful shift in the accessibility of electric transportation for everyday Americans.
Policy uncertainty, however, remains a significant obstacle to faster EV adoption. The current administration has walked back federal EV purchase incentives, challenged California’s emission standards, and relaxed rules on fuel efficiency. Several major automakers have correspondingly dialed back their EV programs. These headwinds mean that even a prolonged gas price spike may not be enough to trigger a wholesale shift in US vehicle purchasing patterns.