The Iran War's Impact On Global Auto Sales - CleanTechnica

The article from CleanTechnica analyzes the impact of the ongoing Iran war on the global automotive industry, particularly focusing on disruptions in oil supply and their implications for vehicle demand. The closure of critical Middle Eastern trade routes—the Strait of Hormuz and Bab el-Mandeb Strait—has halted roughly 20-24% of the world’s oil supply, a disruption significantly larger than past crises in the 1970s and 1980s. This has driven oil prices up to around $100 per barrel. Historically, oil demand has been inelastic due to limited alternatives, but the article suggests that while short-term demand remains inelastic, long-term demand may become more elastic as electric vehicles (EVs) and other alternatives gain traction globally. Regionally, the article highlights China’s automotive sector, which faces overcapacity in both gasoline and electric vehicles. China is managing this through increased exports and factory closures, positioning its automakers to benefit from rising oil prices with higher domestic and international EV demand.