Oil slides as US midterm results watched

Global oil prices fell for a second consecutive day as investors monitored U.S. midterm election results and their potential impact on Middle East diplomacy. Brent crude futures were recently quoted around $103, trading at $103.34 a barrel. U.S. West Texas Intermediate (WTI) traded in the mid‑$90s, at $95.56.

The latest moves extend a sharp selloff that saw Brent drop roughly 7.6% and WTI 7.4% in the previous session, producing the largest two‑day fall since early August. Prices have retreated from peaks seen last month, when Brent reached $118 a barrel, and are now near one‑month lows, bringing the $100 threshold for Brent back into focus.

A key driver of the pullback has been rising expectations that diplomatic efforts could ease tensions between the United States and Iran after an eight‑month war. Both sides are intensifying talks through Qatari mediators, working on a condensed seven‑step proposal that includes sanctions relief, reopening the Strait of Hormuz, lifting a blockade on Iranian ports, and a waiver for Iranian oil sales.

Oil prices also fell nearly 4% on Monday amid hopes that this mediation might lead to a breakthrough. However, Iranian officials have signaled they still see a new U.S. attack as more likely than a deal, and Iran’s leadership has ordered armed forces to prepare for potential strikes on U.S. and Israeli targets. Military tensions, U.S. airstrikes on Qeshm Island, and Iran’s conditions for reopening the Strait of Hormuz underline the ongoing supply risks despite the recent price decline.

The U.S. midterm elections form another focal point for energy markets, with investors weighing how the outcome might influence Middle East policy and peace talks. Vote counting is under way and will determine whether the Republican Party retains control of Congress for the remainder of President Donald Trump’s second term. Trump said the United States will end $4 billion in funding to Israel, a factor cited in lower oil prices.

Markets remain on alert for progress in efforts to end the U.S.-Israeli war with Iran and to prevent further escalation after the elections. Traders are also considering parallel discussions aimed at resolving conflicts in Ukraine and Iran, adding to the complex geopolitical backdrop for energy prices.

Beyond geopolitics and politics, oil fundamentals are providing mixed signals. U.S. crude stocks unexpectedly fell, a development that would typically lend support to prices.

Analysts describe these product and inventory trends as broadly supportive of oil prices, even as futures contracts have slipped in recent sessions. Market participants are awaiting official U.S. Energy Information Administration data, due later on Wednesday, for further confirmation of supply‑demand conditions that could influence whether the current price slide continues or stabilizes.