Show caption: The US midterm results are seen as a message from American v…
Markets looking for clues over America's direction on Iran war
Oil prices continued to decline on Wednesday, falling to their lowest levels in nearly two months, as the market sought signals on the direction of the US-Iran war after the Democrats resoundingly won in the US midterm elections.
Brent, the benchmark for two thirds of the world's oil, slid 8.47 per cent to $94.83 a barrel at 8.58pm UAE time. West Texas Intermediate, the gauge that tracks US crude, shed 7.5 per cent to $88.88 per barrel. Both have now retreated more than 15 per cent this week.
The US held its midterm elections in which the Democratic Party took control of the House of Representatives and the Senate, throwing President Donald Trump's agenda into further uncertainty, not least regarding the direction of the conflict in Iran.
The results are seen as a message from American voters frustrated at high inflation and soaring gas prices as a result of the war.
Oil prices could stabilise if expectations of reduced US military engagement in Iran build, said Aliasgar Tambawala, co-chief investment officer at Dubai-based financial services firm Klay Group. “Sustained progress towards de-escalation and improved security around the Strait of Hormuz would reinforce this relief,” he said.
He added that these developments could reduce the need for further tightening from the Federal Reserve. The US central bank last week decided to hold interest rates after it raised them in September in a bid to tame rising inflation.
The fall in crude prices came even after Washington confirmed carrying out limited strikes on Iran's Qeshm island on Monday. Tehran, on the other hand, said it had intercepted drones in the area.
Negotiations between Washington and Tehran have resumed, with mediators including Qatar and Pakistan, but there have been no clear signals on what the next moves may be.
Iran was less optimistic, with its supreme leader Ayatollah Mojtaba Khamenei reportedly saying that those expecting a shift in US policy towards his country after the midterm elections were “gravely mistaken”.
Iranian Foreign Ministry spokesman Esmaeil Baghaei, meanwhile, warned Washington against further military action, saying the country would not be intimidated by threats or aggression.
Updated:
November 04, 2026, 5:01 PM
Source: The National · Alvin R Cabral
At a glance
- Topic
- World
- Country
- 🇦🇪 AE
- Publisher language
- EN
- Added to Allnira