Oil plummets after Democrats’ victory in the US / Brent has lost 20% this week amid hopes for peace with Iran

The price of Brent crude has fallen by approximately 20% since the beginning of the week, following the Democrats’ victory in the United States midterm elections. The development reflects investors’ hopes that the election result will prompt President Donald Trump to adopt a more cautious stance in the war with Iran.

Brent crude futures fell by nearly 9% overnight, below the threshold of $100 per barrel. On Thursday morning, in Asian trading, the price stood at around $93.50. If the decline holds through the end of the week, the market could record its sharpest weekly drop since April 2020.

Trump acknowledged that the war and rising energy prices contributed to the Republicans’ poor result. Vice President JD Vance confirmed that “the reason we lost is the war”.

The reactions spread across international markets. The S&P 500 index rose by 1.6%, while European stock exchanges reached two-month highs. By contrast, companies in the data center industry were affected by the prospect of stricter regulations, while solar energy stocks advanced.

The dollar weakened against the euro, while U.S. Treasury yields fell. Investors anticipate that a potential easing of tensions in the Middle East would reduce energy costs and inflationary pressures.