Oil prices crashed on Wednesday as political leaders blamed the Iran war for midterm election losses, prompting traders to remove the war risk premium that had pushed Brent toward $118 last week.
Brent fell $8.94, or 8.6%, to $94.66 per barrel on Wednesday, touching its lowest since September 4, after the White House tied Tuesday's midterm losses to the Iran war. Traders are pricing an end to the conflict, removing the war risk premium that had pushed Brent near $118 on Friday. Further de-escalation could keep prices under pressure.
Traders priced an end to the Iran war after the White House tied Tuesday's midterm losses to the conflict, with Trump and Vance both blaming the war.
Brent fell $8.94, or 8.6%, to $94.66 per barrel on Wednesday, after trading near $118 on Friday.
WTI dropped $8.01, or 8.3%, to $88.08 on Wednesday as traders priced an end to the Iran war following White House comments tying Tuesday's midterm losses to the conflict. The removal of war risk premium is the dominant driver, though the article does not give a timeline for ending the war.
Traders priced an end to the Iran war after the White House tied Tuesday's midterm losses to the conflict, with Trump and Vance both blaming the war.
WTI dropped $8.01, or 8.3%, to $88.08 per barrel on Wednesday.
Brent crude tumbled 8.6% to $94.66 per barrel on Wednesday, while WTI dropped 8.3% to $88.08, as traders aggressively unwound the war risk premium. The sell-off followed comments from the White House, Donald Trump, and JD Vance, who linked recent midterm election losses to high gasoline prices and the ongoing conflict in Iran. The market is now signaling an expectation for rapid de-escalation in the region.
Prices fell sharply as traders priced in an end to the Iran war after the White House and political figures linked the conflict to recent midterm election losses.
Brent crude dropped 8.6% to $94.66, down from levels near $118 on Friday, while WTI fell 8.3% to $88.08.