The Global Oil Crisis Is Pushing People Toward Buying Electrified Cars

Electrified vehicle sales hit new highs around the world as 50 countries saw quarterly records in Q2 of 2026, according to the International Energy Agency (IEA). Sales of EVs and PHEVs rose 4 percent year-over-year and 35 percent over the previous quarter and are now expected to reach 29 percent of global car sales worldwide in 2026. 

Much of that boom was driven by fuel price spikes caused by the US and Iran conflict. “Road vehicles account for nearly half of global oil use, making the sector particularly exposed to fuel price spikes and supply disruptions,” the IEA wrote. 

The gain for electrified vehicles comes during a down period for the auto industry. Global car sales dropped five percent in the first half of 2026, largely due to falling shipments in the world’s two largest car markets, China and the US. Electric car sales were already down in the US after the Trump administration eliminated federal EV tax credits and weakened fuel economy rules for ICE vehicles. 

Elsewhere, though, consumers were bullish on EVs, with sales in India, Brazil, Australia and Korea hitting new highs in the first half of 2026. Europe also experienced big gains, with the UK for one seeing a 35 percent increase in BEV registrations over last year, according to the Society of Motor Manufacturers and Traders (SMMT). BEV and PHEV vehicles have made up 36 percent of total car registrations in the UK so far in 2026, according to the SMMT’s report. 

China has been the biggest beneficiary of the EV boom, with companies like BYD starting to tap new markets in Europe and elsewhere. “The share of electric cars in China’s car exports rose from around 35 percent in 2025 to more than 45 percent in the first half of 2026,” the IEA said. The nation is currently building more EVs than it’s selling, though, with an estimated one million electric vehicles currently sitting unsold. 

Worryingly for EV manufacturers in other countries, China holds a leading position across the battery value chain, with “integrated supply chains, strong battery capabilities and production costs that are around 35 percent than in advanced economies,” the IEA report states. It added that other nations will require “coordinated efforts” between government and industry to close that gap.