Brent Crude Oil Falls Below $94 As US Midterm Results Raise Hopes Of Iran War De-Escalation

Global crude oil prices extended their decline for a fourth consecutive session on Thursday, with Brent slipping below $94 a barrel as investors assessed the implications of Democratic gains in the US midterm elections for the Iran war.

Brent crude dropped 0.93% to $93.74 a barrel while the US West Texas Intermediate (WTI) declined 1.50% to $86.80. Both benchmarks had fallen more than 8% in the previous session, reaching their lowest settlement levels since Aug 31.

Oil prices have declined nearly 16% this week as traders reassess geopolitical risks.

The Democrats' reported victories in both chambers of Congress have raised expectations that President Donald Trump could face greater political and financial constraints on further military action against Iran.

Investors consequently see increased prospects of a negotiated resolution.

As per a Reuters report, a large-scale assault on Iran now appeared less likely. Trump told the Financial Times that Washington had no immediate plans to attack Iran.

Vice President JD Vance also questioned the conflict's value, distancing himself from the decision to enter the war and linking it to Republican electoral losses.

Qatar has intensified diplomatic efforts to prevent further escalation. However, Washington and Tehran remained far from reaching an agreement.

Expectations of a diplomatic settlement have strengthened hopes that disrupted Middle Eastern crude supplies could recover further.

Shipments through the Strait of Hormuz, a critical route for Gulf oil exports, have already returned close to pre-war volumes, although transportation costs remain elevated.

JPMorgan estimates that recovering Gulf production and exports have shifted the global oil market back into surplus.

The bank calculated excess supply of approximately 1.1 million barrels per day in September, rising to 1.4 million barrels per day in October.

Improving supply conditions, alongside expectations of reduced geopolitical tensions, have contributed to the latest decline in international crude prices.