Brent Crude Falls 10% Below $100 on Iran War Peace Hopes
Brent crude oil futures plunged 10 per cent, falling below $100 a barrel, as investors bet that a Democratic sweep in the US midterm elections could accelerate efforts to end the prolonged Iran conflict, which has disrupted global energy markets.
The global oil benchmark dropped to an intraday low of $93.22 a barrel, its weakest level in two months. Meanwhile, US benchmark West Texas Intermediate (WTI) crude also tumbled below $90 a barrel as traders reacted to the election outcome and its potential implications for US foreign policy.
The sharp decline gathered momentum after US Vice-President JD Vance attributed Republican electoral losses to the overseas conflict. His remarks reinforced market expectations that Washington could pursue an earlier resolution to the war than previously anticipated.
Senate Minority Leader Chuck Schumer also pledged to bring the conflict to an end, indicating that some Republicans could support the effort. Investors viewed the possibility of bipartisan backing as a positive signal for a diplomatic breakthrough.
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An easing of hostilities could help restore energy shipments through the strategically important Strait of Hormuz, a critical global oil transit route whose disruption has contributed to volatility in international energy markets.
US President Donald Trump, meanwhile, told the Financial Times that he had no immediate plans to escalate military operations in West Asia, further supporting expectations of a potential de-escalation.
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The election results came as rising energy costs emerged as a major concern for American voters. Gasoline prices averaged above $4 per gallon on Tuesday, marking the first time on record that prices exceeded that threshold on a US election day.
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Markets are now closely watching developments in Washington and the Middle East, with any progress towards ending the conflict likely to influence global crude prices and energy supply expectations.