Oil prices drop 8% as US election shifts Iran war outlook

Oil prices fell more than 8% on Wednesday to their lowest in over two months after President Donald Trump's Republican Party lost control of Congress in midterm elections, as investors bet the shift could hasten an end to the US-Israeli war with Iran. Brent futures settled down $8.98, or 8.7%, at $94.62 a barrel, while US West Texas Intermediate crude fell $7.97, or 8.3%, to $88.12, both closing at their lowest since August 31. Trump now faces a choice between a negotiated exit and riskier escalation, with a weakened position and Democratic control of Congress potentially constraining military options and increasing incentives for a deal. Trump told the Financial Times on Tuesday the US had no immediate plans to strike Iran, and he acknowledged the war played a role in the electoral defeat. Iran's Supreme Leader said US hostility would persist regardless of party control, while Qatar stepped up mediation efforts, though a senior Iranian official said the two sides remain far from a deal.