Oil prices drop $8 after Vance post signals Iran de-escalation

Oil prices plunged about $8 per barrel Wednesday after Vice President JD Vance posted that the Iran war drove Republican midterm losses, fueling market bets the White House will seek de-escalation. The drop deepened following the post, which traders saw as a key signal of political pressure to end the conflict. Sen. Chuck Schumer, likely to become Senate majority leader, vowed Democrats will push to end the war, amplifying the sentiment. Analysts said the decline was entirely election-driven, with Vance's statement serving as a "key catalyst" for the selloff, according to Raymond James' Pavel Molchanov. Oil had already fallen earlier in the week on signs of new U.S.-Iran diplomacy. Analysts cautioned that a sustainable price drop requires a durable off-ramp, noting it remains unclear if Vance's comments signal a more dovish administration stance.