US midterm elections weigh on oil prices as Hormuz crisis hopes rise

Oil prices fell sharply over the past two days, partly due to the US midterm elections that favored Donald Trump's political opponents, as markets see increased chances of resolving the Strait of Hormuz crisis, according to expert Alexey Gromov. The market believes Democrats may block Trump's new military initiatives in the Middle East, with senators and officials signaling the war was a poor choice and urging peace talks. Additional factors include China's diplomatic efforts with Saudi Arabia and Iran, plus rising oil shipments through the Strait of Hormuz. Gromov cautioned the downward trend may be unstable, as oil dropped from $118 to below $95 per barrel, but Trump retains broad foreign policy powers and could shift back to aggressive rhetoric toward Iran, potentially reversing the price decline.