Oil Prices Drop Below $94 as Trump's Midterm Setback Boosts Iran De-escalation Hopes

Oil prices fell for a fourth consecutive session on Thursday, with Brent crude dropping below $94 per barrel, as investors anticipated a possible de-escalation in the US-Israeli war on Iran following electoral setbacks for President Donald Trump's Republican Party. Brent crude futures declined 97 cents, or 1.03%, to $93.65 per barrel, while US West Texas Intermediate crude futures fell $1.14, or 1.29%, to $86.98 per barrel. The decline followed an 8% plunge in the previous session, with expectations rising that a weakened Trump, facing a Democratic Congress, might pursue a diplomatic deal with Tehran, potentially restoring disrupted Middle East oil supplies. Analysts cautioned that the path to diplomacy remains uncertain, and volatility could persist as global strategic oil reserves are depleted. Crude shipments through the Strait of Hormuz have recovered to pre-war levels, pushing the global market back into surplus, though US inventories declined last week as demand hit a one-year high.