Higher gas prices stemming from the war with Iran appear to be steering more car buyers toward electric vehicles, though affordability factors could temper that momentum, according to Edmunds.
The details: With the national average gas price rising (currently $3.58 a gallon), Edmunds found a slight uptick in consumer interest in EVs.
In the week starting March 2, EVs—hybrids, plug-in hybrids, and battery electric vehicles—accounted for 22.4% of all vehicle research on Edmunds, up from 20.7% the previous week.
Most of the increase was driven by rising interest in BEVs, which saw the largest gain among electrified powertrains, based on Edmunds’ site activity.
What they’re saying: “Because gasoline prices only began rising sharply late in the week, the shift in shopper behavior is likely still in its early stages,” wrote Edmunds’ Jessica Caldwell, in the report.
“The data reflects just one week of activity, whereas previous major fuel price spikes have tended to influence shopping patterns over longer periods.”
Jessica Caldwell
Why it matters: This could create a near-term opening to re-engage shoppers on hybrids, plug-in hybrids, and EVs, which have been tough to move on lots, especially if fuel costs continue to rise and become a bigger part of the purchase conversation.
Still, while rising gas prices tied to the Iran conflict appear to be boosting interest in fuel-efficient vehicles, the effect may differ from the post-Ukraine invasion surge in 2022 because today’s pricing and financing conditions are far tougher.
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By comparison: The average transaction price for a new vehicle reached $48,766 in February 2026, up from $45,596 in February 2022.
Similarly, the average APR for a new-vehicle loan rose from 4.4% in February 2022 to 7.0% in February 2026, with the average monthly payment climbing from $656 to $775.
“Put simply, in today's market, trying to offset higher fuel costs with a new vehicle purchase can quickly turn a $5 gas problem into a nearly $50,000 decision,” said Caldwell, per her Edmunds report.
Bottom line: Higher gas prices may give dealers a fresh talking point and modestly lift interest in electrified vehicles, but they do not guarantee conversions. The bigger challenge remains affordability, meaning retailers may see more EV consideration without a matching jump in signed deals unless pricing, incentives, or payments improve.
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