IEA: Oil Shock Drives Global EV Sales Toward 23 Million in 2026

The IEA’s Global EV Outlook 2026 shows the Middle East oil shock has accelerated the shift to electric vehicles, with worldwide EV sales now projected at 23 million units this year—nearly 30% of all new-car registrations. Earlier Reuters data had already flagged a 34% jump in European EV demand for April across 16 markets, alongside sharp rises at individual firms such as Octopus Electric Vehicles. Despite an 8% global sales dip in Q1 tied to policy shifts in China and the US, falling battery costs and fresh policy responses are expected to sustain momentum, exerting longer-term downward pressure on oil demand even as near-term geopolitical risks keep crude prices elevated.