02/04/2026

BIZ & FINANCE THURSDAY | APR 2, 2026

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Fuel crisis powers surge in electric vehicle interest

Stocks rally, oil dives after Trump says war to end ‘very soon’ HONG KONG: Equities rallied and oil tumbled yesterday after US President Donald Trump said the Middle East war would be over in up to three weeks and his Iranian counterpart said Tehran had “the necessary will” to bring it to an end. The remarks came as the economic impact of the conflict worsens, with average US gasoline prices topping US$4 a gallon for the first time in four years this week, European inflation spiking and governments unveiling a range of support measures. Trump told reporters in the Oval Office the United States would be leaving Iran “very soon”, perhaps within “two weeks, maybe three”. “But we’re finishing the job,“ he insisted. “We want to knock out every single thing they have,“ Trump said, before adding that “it’s possible that we’ll make a deal before that”. Earlier, Iranian leader Masoud Pezeshkian told the head of the European Council the country had “the necessary will to end this conflict, provided that essential conditions are met – especially the guarantees required to prevent repetition of the aggression”. Wall Street surged, with the Nasdaq up 3.8% and the S&P 500 adding almost 3%. In Asia, Seoul – the standout before the war but among the worst-hit since it started – soared more than 8%, while Tokyo piled on more than 5% and Taipei more than 4%. Hong Kong, Shanghai, Sydney, Singapore, Mumbai, Bangkok, Manila and Jakarta were also sharply higher with London, Paris and Frankfurt. And oil prices tumbled, with Brent at one point shedding more than 5% – back below US$100 for the first time since last week – and West Texas Intermediate off more than 4%. Traders appeared to brush off Prime Minister Benjamin Netanyahu’s comments that Israel would press ahead with its campaign and that “we will continue to crush the terror regime”. However, Trump also said US forces would not work to unblock the Strait of Hormuz, through which a fifth of global oil and gas passes, and said it was up to other countries to do so. “What happens with the strait we’re not going to have anything to do with,“ he said. In a Truth Social post earlier on Tuesday, Trump lashed out at Nato allies and other countries that have refused to help the United States secure the waterway. “The U.S.A. won’t be there to help you anymore, just like you weren’t there for us,“ he wrote. “Iran has been, essentially, decimated. The hard part is done. Go get your own oil!” The remarks came after he said on Monday he was willing to end the war even if the strait remained closed. Trump has zigzagged on whether Washington plans to escalate the conflict – possibly by deploying American ground forces – or try to end it through negotiations. Still, City Index’s Fiona Cincotta warned in a commentary: “Even if outright military tensions ease, the economic damage from elevated oil prices may already be feeding through. “Higher energy costs are likely to tighten financial conditions, raise inflation pressures, and weigh on growth.” She added that “diplomatic signals remain mixed, and as long as uncertainty persists and shipping disruptions remain in place, oil prices are likely to stay elevated”. Traders remain wary as US troops continue to arrive in the region, and after the Wall Street Journal cited Arab officials as saying the United Arab Emirates was preparing to help Washington open the Strait by force, which would make it the first Gulf nation to join the battle. The head of maritime analyst group Kpler told AFP Asia faced the gravest fallout from the war. “We think Asia will, for now, be the ones suffering the most,“ president Jean Maynier said. Gold rallied as the easing of oil prices boosted hope that a feared spike in inflation that could force central banks to lift interest rates. – AFP

TOKYO: Motorists across the Asia-Pacific region are switching to electric vehicles at a rapid pace, as rising fuel costs due to the Middle East war force consumers and companies to reconsider their reliance on petrol and diesel vehicles. The US-Israeli war on Iran has nearly halted shipments through the Strait of Hormuz, which in normal times carries about a fifth of the world’s crude oil and liquefied natural gas, in what the International Energy Agency has called the most substantial supply disruption ever. More than 80% of the crude that passes through the strait is headed for Asia, making the region one of the hardest hit by the oil shock and leaving both consumers and governments to find ways to ease the rising cost burden. Australia, a country heavily reliant on fuel for transport across its vast landscape, experienced a 100% uptick in EV loans in March, as more consumers visit showrooms, according to a report from NAB, the country’s second-largest lender. Enquiries for EV-related lending from companies have increased 88%, it said. “We’re seeing more SMEs and larger operators explore EVs and electrification as a way to manage running costs and future-proof their operations, particularly in a period of ongoing fuel price volatility,” said Shane Ditcham, NAB’s executive for business banking. Surging energy prices are also poised to become a strong tailwind for EV sales in some Asia-Pacific countries like Australia and Japan, where slow-charging infrastructure rollouts and consumer preferences for gas-powered cars capped EV sales growth in the past, analysts said. Sanshiro Fukao, an executive fellow at the Itochu Research Institute, said Japan is now at a point where “the trend of shifting to EVs is finally starting to move into full swing” due to rising energy costs. “With the government subsidising petrol prices in Japan, people at the moment still think that it will be OK. But I expect the situation is going to get worse within the month,” he said, adding that could drive a shift toward EVs. Pure battery-powered EV sales account for less than 2% of total vehicle sales in Japan, as major producers such as Toyota have pushed for the adoption of hybrid vehicles. Toyota and Nissan are expected to gradually expand their line-ups in Japan, as o Inquiries for EVs soar in Asian countries as energy costs rise, petrol runs out

Thai Prime Minister Anutin Charnvirakul arrives in his BYD EV at the Government House in Bangkok. – REUTERSPIC

they pay in other parts of the world”, it added. Commercial cooking liquefied petroleum gas (LPG) gas prices have also risen. India is the world’s fourth-largest buyer of liquefied natural gas (LNG) and second-largest buyer of LPG, which is used for cooking and predominantly sourced from the Middle East. For commercial LPG, 19kg cooking gas cylinder prices increased by around 200 rupees (RM8.58) on average across four key cities of Delhi, Kolkata, Mumbai and Chennai. Domestic household LPG prices were left unchanged in this round of revisions. – AFP Growing demand for EVs in the Asia-Pacific region is a major boon for Chinese EV makers, which are focusing more on the export market as sales slow at home. In China, EVs and hybrids already account for more than 50% of total vehicle sales, according to data from the China Passenger Car Association. “China is already past the tipping point on (new energy vehicle) adoption ... (but) it is nothing short of a major EV tailwind in other markets,” said Bill Russo, CEO of Shanghai-based consultancy Automobility. BYD, China’s top EV maker, saw overseas vehicle sales as a share of its total more than double to 22.7% last year and it more than doubled again to 50% in the first two months of 2026 while its domestic sales plunged. Its Malaysian distributor, BYD Sime Motors, said it observed an uptick in enquiries and customer interest in March compared with the first two months of the year and the company has introduced targeted initiatives such as customised campaigns for corporate and government employees as well as festive promotional campaigns to make its vehicles more accessible. At the Bangkok International Motor Show last week, hundreds of consumers showed great interest in EVs on display, after witnessing the growing frustrations and long lines at local gas stations across the country. “I’ve never thought of veering towards (EV) engines until this crisis,” said 31-year-old Panupong Kunlachotpanit. “It seems like the soaring fuel price and the war are not showing signs of slowing down in the near future at all, so I’m here to check out electric cars.”– Reuters

government subsidies for EV purchases were raised to as much as ¥1.3 million (RM33,000) per vehicle starting in January. And this week, Tesla CEO Elon Musk said his company would make a big investment in Japan in terms of service and its Superchargers. Australia, which has seen rising EV sales in recent years, is also experiencing accelerated momentum, propelled by rising fuel costs. Searches for EVs on major car-sale websites have tripled over the last month and more than half of Australians would consider purchasing an EV, according to 7NEWS, a local television service. “I don’t think there’s anyone out there today who has bought an electric vehicle who’s regretting the decision at this point in time,” Australian Prime Minister Anthony Albanese said last week. In neighbouring New Zealand, more than 1,000 EVs were registered in the week that ended on March 22, close to double the week before, Transport Minister Chris Bishop said last week. “This makes it the biggest week in EV registrations since the end of 2023,” he said. South Korea also reported an acceleration in EV adoption, with registrations more than doubling in March from a year earlier, lifted by rising fuel prices, competition from Tesla and BYD and as consumers rushed to benefit from government EV subsidies. “While it’s unclear how long the current situation will last, higher oil prices are prompting more people to visit showrooms and take test drives,” said a salesperson at a BYD dealership in Gyeonggi province. “It’s not the only reason, but it is certainly one of them.”

India increases jet fuel, commercial LPG costs NEW DELHI: India’s Petroleum Ministry said yesterday that domestic jet fuel prices would rise as the Middle East war pushed up energy costs, but that it had cushioned airlines from an expected 100% jump. markets, price of ATF for domestic markets was expected to increase by more than 100 % on April 1,“ the Ministry of Petroleum said in a statement.

The Strait of Hormuz is a crucial shipping route for oil and gas virtually paralysed by the Middle East war. But the ministry said it had “passed only a partial and staggered increase of 25%” to airlines in order to “insulate the domestic travel costs from the substantial increase in international prices”. Foreign travel routes “will pay for the full increase in ATF prices consistent with what

Aviation turbine fuel (ATF) makes up a substantial chunk of airlines’ expenses, and sustained increases could translate into higher airfares. State-run refiner Indian Oil Corporation said that ATF prices rose by 8.5% in the capital Delhi, with similar rises in other major cities. “Due to the closure of Strait of Hormuz, and extraordinary situation in global energy