Brent Crude Falls to Two-Month Low Near $94, WTI Drops Towards $87 Amid Hopes of Iran War De-escalation

Global oil prices continued their sharp decline on Thursday, November 5, falling for a fourth consecutive session as investors anticipated that the Democratic Party’s sweeping victories in the US midterm elections could increase pressure on President Donald Trump’s administration to end the nine-month US-Israeli war with Iran.

Brent crude futures, the international benchmark, traded between $93.60 and $94.60 per barrel in Asian and early trading, after plunging more than 8 per cent on Wednesday to settle at around $94.62, its lowest closing level since late August.

US West Texas Intermediate (WTI) crude also extended its losses, trading near $87 per barrel after falling 8.3 per cent in the previous session to settle at $88.12.

Oil prices have dropped approximately 20 per cent from their recent peak of nearly $118 per barrel earlier this week, reflecting growing expectations that the Democratic-controlled Congress could restrict further military escalation and push Washington towards a diplomatic settlement with Tehran.

US Vice President JD Vance has publicly linked Republican losses in the midterm elections to voter dissatisfaction with the prolonged conflict with Iran and its economic consequences.

The decline has also been driven by diplomatic developments, with Qatar continuing its mediation efforts between Washington and Tehran. President Donald Trump has indicated that the United States has no immediate plans for further military strikes, although Iranian officials have described recent US responses to diplomatic proposals as unsatisfactory. Further discussions are expected to continue, including related diplomatic engagement in Abu Dhabi.

Meanwhile, the recovery of crude exports from the Middle East has eased concerns over global supplies. Near-term oil supply has begun exceeding demand for the first time since July, while Saudi Arabia has moved to maximise production and shipments.

Although official US Energy Information Administration data confirmed a decline in crude inventories last week, investors remained more focused on geopolitical developments and the possibility of an end to the conflict.

Despite the recent correction, international oil prices remain substantially higher than their pre-war levels in early 2026, when disruptions to shipping through the strategically important Strait of Hormuz intensified supply concerns.

Market analysts warn that commercial oil inventories in major consuming countries remain relatively tight, meaning prices could rise sharply again if diplomatic efforts fail or tensions escalate.

Several financial institutions, including Goldman Sachs, have maintained relatively elevated oil price forecasts for the coming months, citing continuing supply risks in the Gulf region.