The economic fallout from military conflict in Iran is making itself felt at gas stations across the United States, where the average price of a gallon of gasoline has risen to $3.90 — the highest point in close to three years. The price surge has prompted a measurable shift in consumer behavior, with electric vehicle searches rising by 20 percent in the three weeks since hostilities began.
Iran’s strategic response to US and Israeli strikes involved closing the Strait of Hormuz, a passage critical to global oil transport. Approximately one-fifth of the world’s oil supply passes through this narrow corridor, and its disruption has sent shock waves through commodity markets worldwide. American drivers — already sensitive to fuel cost fluctuations — have begun exploring their options as prices rise.
CarEdge’s Justin Fischer said the consumer response was visible almost instantly, with digital searches for EV models spiking within two days of the conflict breaking out. He predicted that continued high prices could push even more Americans into serious electric vehicle consideration. Edmunds’ Jessica Caldwell agreed, noting that gasoline is one of the few purchases where consumers see the full cost upfront and frequently, making it a powerful trigger for reconsidering transportation choices.
Among the options gaining attention is the used electric vehicle market, which has grown significantly in recent years. Vehicles like the Nissan Leaf, pre-owned Tesla models, and used Chevy Equinox EVs can now be found at prices under $25,000, making them financially viable for a much larger pool of buyers than previously. The combination of improved affordability and rising gas prices is expected to drive rapid movement of available used EV inventory.
America’s EV adoption rate, however, still lags significantly behind global peers. Just 7.8 percent of new car sales last year were electric, a slight dip from the previous year. Policy rollbacks, including the elimination of Biden-era EV tax credits and challenges to California’s emission standards, have dampened momentum. In stark contrast, countries like Norway have nearly eliminated new gasoline car sales entirely, illustrating how far the US has to travel on the road to electrification.