Crude oil prices fell more than 8 percent on Thursday after US President Donald Trump’s Republican Party lost control of both chambers of Congress, prompting traders to reassess the likelihood of a prolonged US-Israeli war against Iran.
West Texas Intermediate (WTI) crude futures fell $7.97, or 8.3 percent, to settle at $88.12 a barrel, while Brent crude declined $8.98, or 8.7 percent, to $94.62, according to a Firstpost report carried by the Daily Mirror. Both benchmarks recorded their lowest closing levels since August 31. Al Jazeera reported that oil had dropped to $93.82 a barrel on Thursday morning.
Why the market moved
The eight-month conflict has disrupted Gulf energy supplies and raised fuel costs worldwide. Traders had been pricing in the risk of a wider war involving Iran, Israel and other Gulf states, which could threaten production, exports and shipping through the Strait of Hormuz. Signs of a possible diplomatic opening prompted them to unwind part of that geopolitical risk premium — the extra amount buyers will pay for oil when they fear supply disruption.
The political trigger came from Vice President JD Vance, who publicly blamed the war for the Republican defeat. “The reason we lost is the war,” Vance wrote in a social media post on Wednesday. Trump also acknowledged the conflict had contributed to the setback, and told the Financial Times on Tuesday that the US had no immediate plans to strike Iran.
Democrats will take control of the House and Senate when the new Congress convenes, giving them spending, funding and oversight powers that could constrain an extended campaign. Senate Democratic leader Chuck Schumer has said his party intends to push for an end to the conflict.
A note on the figures
The reported decline of $8.98 implies a prior Brent close of about $103.60, which is higher than the levels reported earlier in the same week. The percentage move therefore appears to span more than a single trading session. LankaNewz records the figures as published by each outlet rather than reconciling them.
Lower crude prices matter directly for Sri Lanka, a fully import-dependent fuel market where the state fuel bill and retail pump prices track global benchmarks.
