The war in Iran has pushed U.S. gasoline prices higher, and the ripple effect is already being felt in the auto market. Kevin Ketels, a 55‑year‑old assistant professor of global supply‑chain management at Wayne State University, bought a 2026 Chevrolet Blazer electric SUV last year without thinking about fuel costs. Now, with the national average regular‑gas price climbing to $3.57 a gallon—up from $2.94 a month ago—he says he’s glad he avoided filling up his older, gas‑powered SUV.
“Electricity can go up, but it won’t go up nearly as much as gas will and it won’t go up nearly as fast, either,” Ketels told AP. The sentiment is echoed by university economists who point out that residential electricity rates are set by regulators and adjust only once a year, insulating consumers from the day‑to‑day swings that fuel the gasoline market. University of California, Davis professor Erich Muehlegger added that this regulatory structure means EV owners are largely shielded from oil‑price shocks.
Still, electricity prices are not static. Analysts note that rising demand from data centers and a shifting generation mix—still heavy on natural‑gas, coal, nuclear and renewables—are nudging rates upward. “This is an inflationary event,” said Holt Edwards, a principal at Bracewell’s Policy Resolution Group, linking the conflict to broader energy‑price dynamics even if the direct impact on electricity bills remains modest.
The prospect of higher fuel costs appears to be changing shopper behavior. Edmunds tracked vehicle‑research activity for the week of March 2 and found that 22.4% of all searches involved hybrids, plug‑in hybrids or battery‑electric vehicles, up from 20.7% the previous week. Historical data from the 2022 fuel‑price surge showed a similar spike in electrified‑vehicle interest, suggesting a pattern: when gasoline hurts wallets, buyers look to electric alternatives.
Price considerations remain a factor, though. New EVs sold for an average of $55,300 last month, compared with an overall new‑vehicle average of $49,353, according to Kelley Blue Book. Despite the higher upfront cost, Peter Zalzal, an attorney with the Environmental Defense Fund, argues that owners can still save “thousands and thousands of dollars” in fuel over a vehicle’s life, especially as gasoline prices rise.
Beyond the wallet, experts argue that clean power and electrification together enhance national‑security resilience. “Clean power and electrification combined is what provides the most security,” said Euan Graham, an analyst at the Ember energy think‑tank. He warned that a surge in EV demand could strain supply chains, but also that sustained consumer interest might pressure governments to revisit tax and tariff policies that currently discourage domestic EV production.
For drivers like Michael B. Klein, a software developer who has owned a Chevy Bolt for eight years, the benefits are clear. “Every time electrical‑grid efficiency improves—especially as renewables are added—I get that benefit no matter what,” he said. “They can improve the efficiency of gas engines, but you have to get a new car in order to reap the benefit of that.”
The confluence of rising gasoline prices, regulated electricity rates, and growing consumer awareness could well accelerate America’s transition to electric transportation—provided that policy incentives and supply‑chain challenges are addressed alongside the market’s emerging demand.