Analysis: The fuel crisis sparked by the conflict between the US and Iran is expected to favor electric cars in the long term.

As the region with the largest and fastest-growing population in the world, Asia is suffering severe impacts from the US airstrikes on Iran. Since the conflict erupted on February 28, retail fuel prices in the region have risen rapidly. For example, diesel prices in Australia have reached a historic high of about 3 Australian dollars per liter, with an increase of around 36% since the start of the war; while gasoline prices in Japan have skyrocketed by 18%. Countries implementing price controls are beginning to face difficulties in fuel supply as the conflict has effectively blocked the Strait of Hormuz. This narrow waterway usually handles around 20 million barrels of crude oil and refined oil products every day, transporting the main energy supplies from the Persian Gulf to various countries in Asia. Global benchmark Brent crude oil futures have risen by about 42% since the conflict broke out, trading around $103.78 per barrel in the Asian market on Tuesday. However, the spot prices of refined oil products such as diesel and gasoline have seen much higher increases. The diesel price benchmark in Singapore has surged by 104% since February 27, closing at $186.43 per barrel on Monday; gasoline prices have risen by 91% to a historic high of $151.60 per barrel. These significant price increases mean that consumers in Asia will face greater spending pressures in the coming weeks and months. Furthermore, there are additional risks of supply shortages as refineries in the region struggle to procure crude oil. The sharp increase in oil prices and concerns about supply shortages are likely to increase the attractiveness of electric vehicles, plug-in hybrid vehicles, and electric motorcycles in Asia.