The worst oil crisis in history has impacted the electric vehicle industry in China, with a historic oil shock and rising fuel prices increasing. The United States and Israel's war against Iran has disrupted critical fossil fuel supplies from the Middle East, pushing crude oil prices to $119 a barrel. This has sparked fears of inflation or a global recession. While China produces and exports more electric cars than any other nation, its carmakers face intense price competition and slowing growth at home. As Chinese EVs are cheaper, gasoline is becoming more expensive, this could boost global expansion for the industry. Analysts suggest that the spread of EVs in China could significantly reduce global crude consumption by 1.7 million barrels per day, or about 70% of Iran's exports in 2025.