Electric car fleets have cushioned the spiralling costs of oil imports following the war on Iran and subsequent energy crisis.
Brent crude, which is used as the worldwide benchmark for oil prices, rose to near $100 (around €89) a barrel on 22 October – the highest in five weeks as concern grows over potential escalation in the Middle East.
On February 27, the day before the US-Israel war on Iran broke out, Brent crude traded at $67(€59.63) per barrel, around 32 per cent lower than today’s prices.
The rising costs have been largely attributed to Iran’s stranglehold on the Strait of Hormuz, a 167km shipping route that usually carries around one-fifth of the world’s daily oil and seaborne liquefied natural gas (LNG) supplies.
At the same time, global sales of electrical vehicles (EVs) have surged by 11 per cent year-on-year, while combustion engine vehicles fell by six per cent in the first eight months of 2026.
How EVs are saving Europe billions
A new analysis by energy think tank Ember found that the EV boom has displaced an estimated 200 million barrels of crude oil, worth $20 billion (€17.82 billion) between March and August 2026
The study, which covers 56 countries that together account for more than 90 per cent of EV sales and more than 80 per cent of all car sales globally, found that China accounted for the largest share of these savings.
The country’s electrified fleet, which consists of around 44 million EVs, has saved $14 billion (€12.48 billion) worth of crude oil.
EU Member States were responsible for a further $3.1 billion (€2.76 billion) of the crude oil displaced by EVs between March and August 2026.
Germany and France represent the largest share in savings at around $760 million and $560 million (€677 million and €499 million), respectively.
However, when comparing oil displacement to each country’s oil consumption, Denmark emerged as Europe’s clear frontrunner.
As of August 2026, the country’s current EV fleet has displaced 6.4 million barrels of oil per year, equivalent to 13 per cent of the country’s oil consumption in 2025.
Elsewhere in Europe, the UK’s EV fleet displaced around $790 million (€704 million) of crude oil in the six months since the start of the fossil fuel crisis. For context, the UK imported £21.5 billion (€25.64 billion) of crude oil in the 12 months to the end of August 2026, according to the UK government
Six European countries (Denmark, France, Germany, the Netherlands, Sweden and the UK) have together saved almost €2 billion by lowering oil-imports.
EVs reduce ‘exposure to volatile oil markets’
“The countries that invested in EVs before this crisis are now better protected and a growing number are following,” says Euan Graham, a senior energy analyst at Ember.
“Every EV on the road reduces exposure to volatile oil markets, and as fleets grow – so does the protection against future supply shocks.”
Graham adds that the global shift to EVs goes beyond cutting emissions, providing countries with improved “energy security and economic resilience” amid political instability.
Are EVs better for the environment?
The environmental pay-off on EVs depends on how the battery was made and whether it is charged using clean electricity or fossil fuels.
A 2020 report by NGO Transport & Environment found that EVs outperform diesel and petrol cars in all scenarios, even on carbon-intensive grids such as Poland, where they are about 30 per cent cleaner than conventional vehicles.
In the best case scenario, where an EV runs on clean electricity with a battery produced with clean electricity, EVs are already about five times cleaner than conventional equivalents.
Ahead of the COP31 UN climate summit, co-host Türkiye has unveiled its “defining priority” to raise the global share of energy demand by electricity to 35 per cent, up from around 20 per cent, by 2035.
Experts are concerned that the pledge could allow governments to count expanded gas-fired generation as progress towards electrification targets – a move they say will “seriously undermine climate goals”.
“Let’s not let electrification become the Trojan horse of our times, used to hide new fossil fuel consumption rather than promote renewable energy,” says Claire Smith of campaign coalition Beyond Fossil Fuels.