Brent oil falls to $94.83 per barrel after US elections — The National

Amid the US midterm elections, the price of Brent oil fell by 8.47% to $94.83 per barrel, while US West Texas Intermediate lost 7.5% and traded at $88.88. Since the start of the week, both grades have fallen by more than 15%, as markets sought signals about the future US course in the war with Iran, The National reports.

Market reaction to the elections

Following the midterm elections, the Democratic Party gained control of the US House of Representatives and Senate. This increased uncertainty over President Donald Trump’s policy course, particularly regarding the conflict with Iran.

The voting results are viewed as a signal of American voters’ dissatisfaction with high inflation and the sharp rise in fuel prices caused by the war. The US Federal Reserve last week kept interest rates unchanged after raising them in September to curb inflation.

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Talks and the Strait of Hormuz

Aliasgar Tambawala, co-head of investment at Dubai financial company Klay Group, said oil prices could stabilize if expectations grow that the United States will reduce its military involvement in Iran. In his view, de-escalation and improved security in the Strait of Hormuz would also contribute to this.

The price decline came despite Washington confirming limited strikes on Iran’s Qeshm Island on Monday. Tehran, for its part, said it had intercepted drones in the area.

Talks between Washington and Tehran resumed with mediation by Qatar and Pakistan, but there are no clear signals regarding the next steps. According to the publication, Iran’s Supreme Leader Ayatollah Mojtaba Khamenei said expectations of a change in US policy after the elections were mistaken. Iranian Foreign Ministry spokesperson Esmail Baghaei also warned Washington against new military actions.