Electric vehicles reduced oil demand during the Ormuz crisis
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Electric vehicles and plug-in hybrids reduced the demand for oil by an estimated 200 million barrels during the first six months of the Ormuz energy crisis.
The energy research center Ember analyzed data from March to August 2026, a period marked by a conflict involving the United States and Israel against Iran. The study found that battery electric vehicles accounted for 82.5% of the value of the avoided oil.
While this shift reduces the need for imported crude oil, Ember notes that the figure does not represent a direct savings on the cost of electricity or the purchase price of the vehicles for drivers. China accounted for the largest portion of the saved oil, while Germany and France led the reduction within the European Union. In Denmark, the oil displaced by the national fleet of electric cars already equals 13% of the country's total annual crude oil consumption.
This shift helps countries diversify their energy supplies by utilizing local electricity generation rather than relying on international oil markets. Global market trends show that battery electric vehicle sales grew by 11% year-on-year between January and August 2026. In markets excluding China and the United States, electric vehicle sales increased by approximately 45%. Conversely, United States electric vehicle sales fell to 6% of light vehicle sales after federal incentives were removed in 2025.
