General view of a road and a car dealership in Beijing, China. Graphic: Rudaw
BEIJING - The ongoing Middle East war, which has disrupted up to 20 percent of global seaborne oil trade and pushed oil prices up by 40 to 50 percent, is prompting Chinese drivers to turn to cost-effective electric vehicles and further cementing Beijing’s position as the world’s leading producer of new energy cars.
The Iran‑Israel‑US war, which entered its 36th day on Sunday, has triggered what the International Energy Agency (IEA) described as the “largest supply disruption in the history of the global oil market,” leaving Brent crude above $120 per barrel in early March.
The global spike has pushed gasoline car owners in China, feeling the impact at the pump, toward electric vehicle alternatives.
Wang Heng, a taxi driver in Beijing, told Rudaw, “Due to rising oil prices, I recently bought this electric vehicle because it is more cost-effective.”
Similarly, Wang Xiao Xiao, a human resources specialist in the Chinese capital, said she is keen on buying an electric vehicle “because of the rising oil prices,” adding that the quality of Chinese-manufactured EVs is both “convenient and cost-effective” for her “daily commute in the city.”
Even before the Iran war began, China had already produced roughly half of the world’s plug-in vehicles.
According to the China Passenger Car Association (CPCA), retail sales of new energy vehicles in March 2026 reached approximately 900,000 units - a 94 percent increase from February 2026, which saw 464,000 units sold.
By the end of the first quarter of 2026, the total number of electric and plug-in hybrid vehicles in use in China had surpassed 36 million, with most industry analysts projecting Beijing’s total NEV sales for the full year 2026 to reach between 15.5 million and 16.5 million units.
Jin Xin Zhong Teng, a car dealership owner, told Rudaw, “Our daily sales are generally over 240 vehicles,” noting that “new energy vehicles are attracting more buyers” amid the ongoing war.
Washington and Tel Aviv launched a coordinated military campaign against Iran on February 28, striking more than 12,300 targets across the country, according to a Thursday report by the US Central Command (CENTCOM).
In response, Tehran has carried out thousands of drone and missile strikes across the Middle East, targeting alleged US assets in the region - particularly in Gulf Arab states - as well as launching retaliatory attacks against Israel.
According to the Armed Conflict Location and Event Data Project (ACLED), the conflict had resulted in nearly 80 strikes on energy infrastructure by March 22, affecting both the belligerents and the energy sectors of Azerbaijan, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Iraq, and the Kurdistan Region.
Meanwhile, the Strait of Hormuz remains effectively closed to commercial traffic after the Iranian military declared it a restricted war zone, warning it would “set ablaze” any ship attempting to pass through. Often described as the world’s most critical oil shipping corridor, the Strait of Hormuz typically handles about 20 percent of global seaborne oil trade.
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