Key Moments
- Brent crude futures traded at $102.49 per barrel, down 1.1%, while U.S. WTI futures fell 1.0% to $95.17 as of 05:06 ET (10:06 GMT).
- Democrats won control of both the House of Representatives and Senate, reshaping the political backdrop for President Donald Trump’s second term.
- An additional tanker attack in the Strait of Hormuz underscored ongoing security risks to global crude flows through the key shipping route.
Election Outcome Meets Energy Market Caution
Oil prices softened on Wednesday as market participants evaluated how the U.S. midterm election results might influence policy toward the conflict in the Middle East. The move came after Democrats won control of both chambers of Congress from President Donald Trump’s Republican Party.
By 05:06 ET (10:06 GMT), benchmark prices were lower across the board. Brent crude futures were down 1.1% at $102.49 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined 1.0% to $95.17 per barrel.
| Contract | Price (USD) | Move | Time |
|---|---|---|---|
| Brent crude futures | $102.49 | -1.1% | 05:06 ET (10:06 GMT) |
| WTI crude futures | $95.17 | -1.0% | 05:06 ET (10:06 GMT) |
The shift in congressional control was seen as a political setback for Trump for the remainder of his second term and raised questions about the trajectory of his administration’s policy agenda. Market focus, however, stayed firmly on whether Washington would lean toward additional military action against Iran or opt for a more diplomatic track.
Mixed U.S. Signals on Iran Keep Traders on Edge
Conflicting messages from the White House contributed to heightened uncertainty. U.S. forces carried out what officials described as defensive strikes against Iranian air defense targets on Qeshm Island, close to the Strait of Hormuz, earlier in the week. Afterward, Trump stated that Washington did not have immediate plans for more strikes.
Both Tehran and Washington are examining new proposals from intermediaries designed to narrow their differences and avert a return to full-scale war, according to Bloomberg, which cited a diplomat familiar with the talks.
Iran, for its part, said that the U.S. reply to its conditions for reopening the Strait of Hormuz was not satisfactory. Qatar has intensified its role as a mediator, and the two sides continue to trade proposals. Still, a senior Iranian official told Reuters that the parties remain far from any deal.
Strait of Hormuz Remains Central to Supply Risk
The Strait of Hormuz continued to loom large over energy markets, as any disruption to shipping through the vital corridor could tighten global crude supplies. Another oil tanker was attacked in the waterway, deepening worries about the safety of energy transportation in the region.
Ahead of the vote, expectations that military action might resume after the elections had driven crude benchmarks to a six-month high. Subsequent indications of possible diplomacy prompted a swift pullback in prices.
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