Iran War Disrupts Oil, Boosts Global EV Sales

A war in Iran that began with U.S. and Israeli airstrikes in late February has disrupted oil flows through the Strait of Hormuz, spurring a global surge in electric vehicle sales and Chinese exports of solar panels and batteries in March.

Iran's military halted ship traffic through the strait, a chokepoint for about one-fifth of the world's oil, leading to sharp fuel price increases worldwide. Asia has faced the steepest impacts, with countries like Japan, South Korea and the Philippines confronting energy shortages. Negotiations have produced a U.S.-Iran ceasefire, but tensions persist as both sides have seized vessels in the strait.

Global electric vehicle sales reached 1.1 million units in March, a 2 percent rise from the year-earlier period, according to BloombergNEF data. In Europe, consumers in France, Germany and the United Kingdom purchased 206,200 EVs in the first four weeks of the month, up 44 percent year over year. Italy saw 16,000 battery-powered vehicles sold, a 67 percent increase, while South Korea recorded more than double the prior year's transactions. Australia bought 14,100 EVs, up 68 percent.

Chinese exports of EVs and hybrids hit a record high, rising 140...