Australian sales of electric vehicles overtook gas-powered cars for the first time in August, official data shows, with experts citing higher oil prices from the U.S.-Israeli war with Iran and the closure of the Strait of Hormuz as a main driver. The country, known for vast distances and a love of long road trips, has seen a slow E.V. transition due to range anxiety. But costs have fallen thanks to Chinese imports and better charging infrastructure.

"What began as a climate and technology story is increasingly becoming an energy security story," said Hussein Dia, professor of transport technology at Swinburne University in Melbourne. He noted the fuel crisis shifted the question from range to exposure to global oil shocks. Cost-of-living pressures and oil shortages have made running costs as prominent as environmental concerns.

In 2020, about 1,770 battery-electric cars were sold in Australia. By 2024, that figure reached 91,500. Through July 2025, about 127,370 were sold, while gas car sales declined. Chris Bowen, Australia's climate change and energy minister, called it a "landmark moment" as Australians vote with their wallets for cheaper, cleaner cars.

Retail gasoline prices were about 30 percent higher than the previous year. Australia imports about 90 percent of its fuel, reliant on Middle East crude via the strait. Prime Minister Anthony Albanese halved the fuel excise from April through June, but many canceled Easter road trips. Rohan Martin, chief executive of the National Automotive Leasing and Salary Packaging Association, said customers previously "sitting on the fence" switched to E.V.s.