IEA says Mideast war drove 35% jump in global EV sales

Global electric vehicle sales surged 35 percent in the second quarter of 2026 compared to the first three months of the year, setting quarterly records in 50 countries as soaring fuel prices driven by the Middle East war pushed consumers toward battery-powered cars, the International Energy Agency said on Thursday.hurriyetdailynews+1

Energy Crisis Drives Shift

The IEA attributed the sharp rebound to the energy crisis sparked by the conflict in the Middle East, which sent crude oil prices from around $60 a barrel at the start of the year to nearly $120 after Iran effectively closed the Strait of Hormuz — through which a fifth of the world's oil normally transits — following Israeli and American attacks in February.ndtv+1

"Despite a challenging backdrop for the global car market, sales of electric cars surged in the second quarter of this year as the energy crisis sparked by the war in the Middle East brought fuel price volatility back into sharp focus," the agency said.ndtv

With road vehicles accounting for nearly half of global oil consumption, the IEA said EVs are now "in the spotlight as part of potential policy responses, thanks to the opportunity they present to enhance energy security for oil-importing countries while at the same time shielding consumers and businesses from price fluctuations."hurriyetdailynews+1

Regional Divergence

More than 90 countries recorded year-over-year EV sales growth during the first half of 2026, with Australia, Brazil, India, Korea, and Vietnam among the standouts. Europe recorded the strongest growth, with sales climbing more than 30 percent in the first half of the year. Several oil-import-dependent countries in Southeast Asia introduced temporary tax breaks to encourage EV purchases.electrek+3

China's EV exports soared 65 percent year on year in the second quarter, and the value of Chinese low-carbon energy exports of batteries, solar panels, and EVs grew 60 percent in the first half of 2026 to $143 billion, according to Energy Intelligence. However, Chinese domestic EV sales are expected to stagnate for the first time this decade as its overall car market weakens.energyintel+1

In the United States, EV demand has fallen sharply after the Trump administration ended federal EV tax credits in September 2025 and weakened fuel-economy rules.electrek

Outlook Raised

Building on the second-quarter momentum, the IEA raised its 2026 outlook, now expecting EVs to account for 29 percent of all cars sold worldwide this year — one percentage point higher than its May forecast — while the overall car market is expected to contract. The agency projects electric car sales will grow 10 percent for the full year.jordannews+3