Oil prices plunge 8% as US midterm losses raise bets on Trump ending Iran war

Oil prices plunged over 8% on Thursday after President Donald Trump's Republican Party suffered a sweeping defeat in the US midterm elections, with Democrats winning control of both chambers of Congress. The result prompted traders to bet on a diplomatic settlement to the US-Israeli war against Iran rather than escalation. US benchmark West Texas Intermediate crude fell $7.97, or 8.3%, to settle at $88.12 a barrel, while Brent crude declined $8.98, or 8.7%, to $94.62, both hitting their lowest closing levels since August 31. Vice President JD Vance publicly blamed the Iran war for the electoral defeat, and a Democratic-controlled legislature could challenge the administration's military approach through spending powers and oversight. Gulf exports remain disrupted, averaging 17.1 million barrels per day in October, about three-quarters of pre-war levels, and the Strait of Hormuz remains a critical supply factor. Washington and Tehran remain far from a peace deal, and analysts note that any settlement terms could create fresh instability. The price drop could offer relief to India, a major oil importer, though domestic fuel prices depend on additional factors.