The spiking price of oil helped increase global sales of electric cars in the second quarter of 2026 despite total car sales falling, a new International Energy Agency (IEA) report shows. The IEA’s latest update on the market for electric cars said sales increased by 4% in the second quarter, after the war between the US, Israel and Iran disrupted oil supplies around the world and caused oil prices to jump at the end of February. The increase in electric car sales was achieved despite customers buying fewer vehicles in total due to economic problems and, in China, a reduction in government subsidies for cheap cars. Total car sales fell 5% globally in the first half of 2026. ‘While a lag in consumer responses and policy implementation means the full effects will take time to materialise, the crisis has clearly reinforced the case for [electric vehicles] as a way to address energy security and fuel cost concerns,’ the IEA’s report said. May 22, 2026 Clean Energy Frontier Chinese EV brands woo Yemen’s wealthy elite as war prompts solar boom For the well-off few, buying an EV is the next step in a solar revolution that has helped Yemenis weather years of power outages and high fuel prices Read more Apr 8, 2026 News Charging worries, high prices put brakes on EV growth in Bangladesh Sales of e-bikes and rickshaws are up amid queues at fuel stations, but a lack of charging infrastructure and high prices still deter many Bangladeshis from going electric Read more Apr 2, 2026 News Nepal’s EV revolution pays off as oil crisis causes pain at the pumps Import subsidies, abundant hydropower and charging investments have spurred EV adoption, with electric vehicles now making up about three-quarters of new car sales Read more The IEA predicts that sales of electric cars will speed up in the second half of the year, increasing by 10% for 2026 in total compared to 2025. Electric car sales will be 29% of total car sales over the full year, it forecasts, up from 24% in the first half. The IEA expects sales of fossil fuel-reliant internal combustion engine vehicles to continue declining, as they have been doing for a decade because of economic shocks like the COVID-19 pandemic and, since around 2020, the rise of electric cars. Road transport – which also includes two- and three-wheeled vehicles like scooters and rickshaws – currently accounts for half of global oil use. The oil industry has been trying to expand markets in newer, growing sectors like plastic to replace its declining business in petrol and diesel for road transport. Pro-EV policies As well as the higher oil price, the IEA said this year’s electric car boom is being driven in some countries – particularly in Europe and Southeast Asia – by government policies that have been put in place since the Iran war blocked shipping of oil and other commodities through the Strait of Hormuz. It highlighted the Netherlands and Ireland, which have both announced subsidies for scrapping old internal combustion engine cars and replacing them with electric ones. Australia, Spain, Chile, Vietnam and the US state of California have introduced, or are introducing, tax benefits for electric cars. Australia, the UK and Hungary have announced funding or support for charging infrastructure, while Cambodia, Brazil and Kenya have reduced taxes on imports of electric vehicles. Growth in electric car sales was particularly strong in Europe, Brazil, Australia, India, South Korea, Vietnam, Colombia, South Africa and New Zealand. On the other hand, electric car sales fell 16% in China – the world’s biggest electric car-buying country – in the second quarter. This was driven by a decline in total car sales, which was more extreme for internal combustion engine cars than electric ones. In the US, electric car sales rose 20% in the second quarter compared with the first quarter of 2026. But this was about 25% less than in the same period of 2025, when Americans were taking advantage of expiring Biden-era federal tax credits. These statistics back up Climate Home News’ reporting from the ground since the oil price spiked. As we reported from Yemen in May, the IEA data shows Chinese electric car companies are having success in the Middle East. And as our correspondents found in Nepal and Bangladesh, there has been a surge of interest in electric vehicles across Asian countries outside of China. Yet while EV adoption in Nepal has been enabled by investments in charging and import subsidies, drivers in Bangladesh have been put off by a lack of chargers and high prices for electric two-wheelers. The post Hormuz crisis speeds up transition to electric cars, IEA data shows appeared first on Climate Home News.