Brent crude prices hit $110 a barrel as traders react skeptically to Iran war talks, creating fresh momentum for electric vehicle adoption. The energy market shock comes as major Western carmakers retreat from electrification, with Stellantis announcing a €25.4bn writedown and Ford and GM writing down billions in EV investments.

Despite US market weakness—where EVs fell to 5.8% of sales last month—the global transition continues unabated. Europe's EV market share reached 17.4% last year, while China hit 28%, with both markets on track to eliminate new combustion engine sales within a decade. The EU has softened its 2035 ban to require 90% zero-emission vehicles instead of an outright prohibition.

Chinese EV makers are emerging as primary beneficiaries of both the energy crisis and Western hesitation. Their share prices have surged since the February 28 conflict began, while incumbent carmakers have sold off. Bernstein data shows electric and plug-in hybrid sales outside China, US, and EU rose 95% in January year-over-year. With oil prices likely elevated for months, analysts expect accelerating EV adoption as battery technology improves and charging infrastructure expands.