Global electric vehicle fleet significantly reduces oil demand, impacting traditional energy markets.
Demand drop equals nearly 70% of Iran’s oil exports, report highlights.
Shift signals long-term impact of EV adoption on global oil consumption trends.
The global electric vehicle (EV) fleet avoided the consumption of 1.7 million barrels of oil per day (mbpd) in 2025, nearly as much as 2.4 mbpd exported by Iran through the Strait of Hormuz, according to a report published by Ember.
The report, titled ‘The energy security fall-out: from fossil fuel fragility to electric independence’, revealed how electrification is becoming the primary lever to reduce vulnerability to global energy shocks.
2 March 2026
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Global Oil Dependency Risks
According to the Ember report, oil remains the "Achilles’ heel" of the global economy, with 79% of the world’s population living in oil-importing countries.
For every $10 per barrel increase in oil prices, the global net import bill surges by approximately $160bn annually.
Asia is identified as the most vulnerable region, importing 40% of its oil through the narrow Strait of Hormuz, a chokepoint currently carrying a fifth of global exports.
"This is Asia’s Ukraine moment," Daan Walter, a principal at Ember stated in the news release.
He noted that while the 1970s lacked viable alternatives, today’s "electrotech"—including EVs, solar and wind—offers a common-sense choice for countries seeking to insulate themselves from price volatility.
Replacing imported oil in transport with EVs could eventually reduce global fossil fuel imports by a third, saving roughly $600bn per year.
The transition is already yielding significant dividends. In 2025, China saved over $28bn in avoided oil imports through its current EV fleet, while Europe saved $8bn.
Rapid adoption is now led by emerging markets. While Viet Nam saw an EV sales share of 38% last year, Thailand (21%) and Indonesia (15%) outpaced the United States (10%).
The report concluded that the current crisis is accelerating the arrival of "peak oil" demand, which may now occur as early as 2026.
Unlike fossil fuels, which require continuous "renting" through imports, renewable technologies allow countries to "own" their energy supply for decades with no fuel costs or supply risks.
