Daily on Energy: Electric vehicles are getting a boost from the Iran conflict

WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, readers! For all you Marvel fans out there, Spider-Man: Brand New Day releases in theaters today. Whether you are watching it this weekend or next, we hope you enjoy the movie! 🕷️🎥🍿Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list. Arizona’s Democratic Gov. Katie Hobbs blasted the Trump administration’s proposal to cut the amount of water from the Colorado River used by Arizona, California, and Nevada, claiming the steep cuts would hurt the administration’s artificial intelligence agenda. “Inequitable, federally imposed cuts to our Colorado River water allocation will be unacceptable to Arizonans, and will put every American at risk,” Hobbs said. “Previous federal proposals to slash Arizona’s Colorado River water would be devastating for our nation as we work to compete with China in the AI race, onshore critical supply chains, feed the country, and rebuild our depleted missile stockpile.” GLOBAL ELECTRIC VEHICLE SALES CLIMB AS U.S. MARKET STABILIZES: Global electric vehicle sales continue to climb as high gas prices push consumers toward lower-cost options, but the U.S. market remains in transition. Global EV sales rebounded in the second quarter, rising by 35%, the International Energy Agency reported yesterday. The organization said the boost in sales was in part driven by higher oil and gasoline prices caused by the war in Iran. However, while EVs gain traction in places like Europe and Asia, the U.S. market remains in a transition period following the cuts to tax credits and reversal of policies supporting the domestic EV industry. ZETA’s research director, Corey Cantor, told Maydeen that EV makers “here in the U.S. have seen greater interest in electric vehicles since the situation with Iran began, of course, higher interest is different than sales.”“But taken together, in previous situations around higher gas prices, consumers moved to more fuel-efficient vehicles, whether that’s electric vehicles or hybrids,” Cantor said. He noted that EV sales have grown globally, due not only to higher gas prices but also to Chinese and other foreign automakers making more affordable model options. Signs of stabilization: Americans bought 14.7% more EVs in the second quarter than in the first quarter, Kelley Blue Book reported earlier this month. EV sales are still down compared to the same period last year, but there has been some improvement. It also noted that consumers purchased 2.2% fewer cars in the first half of the year, but 9% more hybrids. Cantor said that, after the third quarter, he expects the domestic EV market to begin to stabilize, following the incentive cuts. “I’m more optimistic about the second half of the year compared to the first, just as you’re moving further away from the subsidy expiration to a more natural market,” Cantor said. He noted that California’s new electric vehicle rebate program could help sales in the fall. Earlier this month, California introduced a new incentive program, offering rebates of $3,500 on new electric vehicles for first-time buyers later this summer. STEPS YOU CAN TAKE TO LOWER YOUR ELECTRICITY BILL: Callie took a deep dive into all the different ways homeowners, renters, and small business owners can lower their energy bills. Be sure to keep an eye out for her report on the Examiner site this weekend. In the meantime, though, here is the gist of it:While the underlying price for electricity bills is set by utilities, state regulators and grid operators, there are several actions homeowners and small business owners can take to lower their monthly bill. And the root of all those actions is addressing how exactly you are consuming and using energy. If you aren’t exactly sure where to start, most experts recommend conducting a home energy assessment or audit. A professional assessment generally costs between $300 and $500, depending on the size of the home or business. However, many utility companies, including Duke Energy, PG&E, Eversource, and Pepco, offer these assessments at no additional cost to the consumer. During these assessments, a utility representative will identify various things the consumer can do to save energy, such as upgrading the heating, ventilation, and air conditioning (HVAC) system, adjusting temperatures in various rooms, or changing out old or dirty air filters. After determining what areas can be improved, homeowners and small business owners then have the choice to implement any changes. “I think it comes down to what comfort level can a customer live with,” Meghan Dewey, senior vice president of products and services and pricing solutions at Duke Energy, told Callie. “Because there are a lot of ways you don’t even have to use energy, but you might be a little uncomfortable. You can turn your thermostat up pretty high in the summer, but are you going to be comfortable? But, I do think that there are things we take for granted.” Here are just a few tips and tricks to consider: Keeping thermostats set at higher temperatures, such as 72 degrees or above Switching to a time-of-use pricing plan, then using power-hungry appliances during off-peak hours Closing curtains or blinds during the day to block out additional heat Installing additional weather stripping or caulking around windows Replacing appliances with energy-efficient alternatives, such as a smart thermostat or heat pump All the rest COUNTIES AND MUNICIPALITIES REIN IN NEW DATA CENTERS: More than 500 counties and municipalities have sought to restrict or ban new data centers, Heatmap reported. Nearly 190 restrictions have been enacted since June 1. Heatmap said that more than 50 data centers have been canceled this year after facing public opposition. Eight projects were canceled in July alone. BIG OIL COMES ON TOP: Two of the biggest oil and gas companies raked in billions of dollars during the second quarter of this year, cashing in on soaring oil prices. Chevron’s net income soared to $12.2 billion in the three months ending with June, a nearly 400% increase compared to the same period last year, when the company reported $2.5 billion in profits. Exxon Mobil saw a similar surge in profits for the quarter at around $14.5 billion, more than doubling from the $7.1 billion reported in the second quarter of 2025.The oil companies’ profits are also being propped up by refining capacity displaced in the Middle East. As the war in Iran has resulted in the loss of millions of barrels of refining capacity per day, existing refineries have become all the more profitable – and as a result, Exxon and Chevron are running their refineries close to their maximum capacity. During the first quarter of this year, Chevron’s downstream business – which includes its refineries – saw a loss of around $817 million. As the war raged on, the company swung that back into the green during the second quarter to a profit of $4.868 billion. Quick reminder: Last month, Trump ordered the Department of Justice to investigate major oil companies over price gouging, as gasoline prices failed to fall at the same rate as oil after the signing of the MOU between the U.S. and Iran. WHERE ARE PRICES NOW: Tensions in the Middle East are putting more upward pressure on oil prices, as Iran said today that it attacked two tankers moving through the Strait of Hormuz. Four additional vessels abandoned plans to transit through the waterway after the attacks, according to reports. By around 2:30 p.m. EDT, international benchmark Brent crude had jumped by around 1.55%, selling at $88.03 a barrel. West Texas Intermediate also increased 1.36% and was priced at $84.73 a barrel. Oil executives have repeatedly warned that, until the Strait of Hormuz reopens, markets will not be able to return to and sustain pre-war trading levels. “It is the main artery of supply for the world that powers economic growth everywhere and so eventually those barrels are going to have to flow,” Exxon Mobil CEO Darren Woods told CNBC. “The only question is how long will it take to get to some resolution here so that the strait opens up and that production can come back line on in the Middle East.”‘DRILL, BABY, DRILL’ UPDATE: The oil and gas rig count is back up after seeing a small dip last week. Data released by Baker Hughes this afternoon shows the number of active oil and gas drilling rigs increased by one over the last week, bringing the total to 588. This is roughly 48 more rigs active than this time last year. The oilfield services company found that the number of inland water rigs and onland rigs remained unchanged, while the number of offshore rigs increased by one. The number of active oil rigs also increased by one, while the number of gas rigs remained the same.BP MOVES TO SELL NORTH SEA ASSETS: British oil major BP announced today that it plans to sell off its oil and gas field in the North Sea, signaling that the industry isn’t as convinced as Trump that U.K. Prime Minister Andy Burnham will reopen the region to new drilling. “The North Sea remains integral to the UK’s energy system,” CEO Meg O’Neill said this morning. “However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.BP currently has five production hubs, two located in the central North Sea and three just west of Shetland. It employs around 1,100 people for its North Sea business. The company’s portfolio for the region is estimated to be worth around $2.6 billion. Once a sale of its assets is finalized, BP will join a growing list of oil and gas companies that have sold, merged, or significantly reduced their operations in the North Sea, including Exxon Mobil, Chevron, ConocoPhillips, Shell, TotalEnergies, and Eni. EUROPEAN WILDFIRES THREATEN GREECE: Wildfires are threatening parts of Greece due to high winds and high temperatures. Firefighters are battling fires in mainland Greece and the islands of Crete and Paros, Bloomberg reports. Winds of up to 62 miles per hour are spreading the fires and making it difficult for planes and helicopters to battle the flames. About 250 residents and tourists at a village on the Gulf of Corinth had to evacuate as firefighters worked to control a fire. Europe is experiencing a historic wildfire season, with more than 300,000 people evacuated across the continent. RUNDOWNBloomberg The Age of Unstoppable Wildfires has Reached Europe Canary Media California was mostly solar-powered in May — a global firstLatitude Media The new legal landscape for canceled DOE awards