EVs Offsets Oil Consumption Equivalent to 70% of Iran’s Export in 2025: Report

A new analysis by Ember found that the electric vehicle fleet prevented the oil consumption of 1.7 million barrels per day of oil globally in 2025, which is equivalent to 70% or 2.4 million barrels exported by Iran through the Strait of Hormuz. 

According to the analysis, global solar growth in 2025 alone could have displaced gas-fired electricity equivalent to all LNG exports through the Strait of Hormuz. 

With nearly 80% of the oil and 90% of the LNG passing through Hormuz is destined for Asian markets, which is roughly 40% of Asian oil demand and over a quarter of Asian LNG imports. Japan, South Korea, India, and Thailand all depend on it as their main source of supply, making them vulnerable to disruptions. 

Fossil Fuels - A Costly Dependence

The analysis said the fossil fuel dependency is widespread and expensive, about three quarters of the world live in net fossil fuel importing countries. Fifty countries import over half their primary energy as fossil fuels. Spain, Italy and Germany, for example, import over two-thirds of their energy. Japan and Korea over 80%, India 37% and China a quarter. When trade routes are under threat, these countries are exposed.

The analysis found that the first order impact of the supply disruption is already visible. Fuel costs have surged, inputs such as fertilisers, plastics, and chemicals that are dependent on fossil fuels are also becoming more expensive, raising concerns for inflation and industrial outputs. 

Asia’s Ukraine Moment 

Daan Walter, a principal at global energy think tank Ember said, “This is Asia’s Ukraine moment.” drawing parallels with Europe’s response to to reduce its dependency on Russian fossil fuels. The analysis said that the US-Israel war with Iran will inspire Asia to reduce its dependency on imported oil and gas.

The analysis also pointed out that Asia has an advantage that Europe did not have. Solar, wind, batteries and EVs are much cheaper and more readily available than they were in 2022, making the switch far more affordable with countries like India and Vietnam already showing the way. 

The report noted that the case that was made for LNG as Asia’s transition fuel that is  cleaner than coal, available at scale, and secure is now much weaker. Countries will be carefully considering the security of building long-term import infrastructure around a commodity that can see dramatic price spikes and supply risks.

Scaling clean energy is the cost effective solution 

The report said that solar and wind power could replace imported fossil fuels, electric vehicles could replace imported oil in road transport and heat pumps could replace imported gas and oil in heating. Furthermore, scaling these solutions to fully replace imported fossil fuels across all sectors could reduce importers’ bills by approximately 70%.