Electric vehicles avoided oil consumption equivalent to 70% of Iran’s exports in 2025: Ember

Mumbai: The global electric vehicle fleet avoided the consumption of 1.7 million barrels per day of oil globally in 2025, nearly matching the 2.4 million barrels exported by Iran through the Strait of Hormuz, according to new analysis by global energy think tank Ember.

“Oil is the Achilles’ heel of the global economy. In particular, Asia’s oil vulnerability has been exposed by the current crisis,” said Daan Walter, a principal at global energy think tank Ember.

Oil dependence remains widespread, with 79 per cent of the global population living in oil-importing countries. For every $10 per barrel increase in oil prices, the global net import bill rises by around $160 billion per year.

The Strait of Hormuz is a vulnerable chokepoint, carrying a fifth of global oil exports. The wider Gulf region, within range of cheap drones, provides 29 per cent of global oil supply. Asia is particularly exposed, importing 40 per cent of its oil through the strait.

“This is Asia’s Ukraine moment,” said Walter. “But the US experience shows that producing oil at home does not protect economies from global price shocks.”

Oil prices are set globally, so disruptions affect producers and importers alike. In Texas, one of the world's largest oil-exporting regions, gasoline prices rose by more than 25 per cent since the war started, a larger increase than in oil-importing countries such as the UK and France.

Replacing imported oil used in transport with electric vehicles could reduce global fossil fuel imports by a third, saving around $600 billion per year, according to Ember’s analysis.

Electrification technologies already exist for more than three-quarters of global energy demand, and every country has sufficient renewable resources to meet that demand with domestic wind and solar.

“Unlike the oil crises of the 1970s, there is now a better alternative,” said Walter. “Electric vehicles are increasingly cost-competitive with gasoline cars. Oil volatility means EVs are a common-sense choice for countries wishing to insulate themselves from future shocks.”

Across many countries – particularly emerging economies in Asia – rapid EV deployment is already slowing the growth of oil demand. Ember analysis shows that 39 countries now have an EV sales share above 10 per cent, up from just four in 2019. Last year, Viet Nam (38 per cent) was ahead of the EU (26 per cent), Thailand (21 per cent) and Indonesia (15 per cent) outpaced the US (10 per cent), while India (4 per cent) and Brazil (9 per cent) recorded higher shares than Japan (3 per cent). China reached over 50 per cent EV sales share for the first time in 2025.

The cost savings are already significant. With oil at $80 per barrel, China saves over $28 billion a year in avoided oil imports through its current fleet of EVs alone; Europe about $8 billion and India $0.6 billion per year.

The International Energy Agency’s latest forecast sees oil peaking in 2029, with consumption not much higher than 2025 levels. The latest crisis could drive that peak even sooner.

The growing disruption of oil supply – and demand – highlights how scaling renewables and electrification could reshape global energy security in the coming decade.