Crude Oil Prices Stabilise After Sharp 8% Fall as US Election Raises Iran Peace Hopes (November 5, 2026)

Crude oil prices remained largely steady in Asian trading on Thursday, November 5, 2026, after falling more than 8% in the previous session. As per news reports, investors weighed the possibility that the Democrats' sweeping victory in the US midterm elections could increase pressure on President Donald Trump to end the conflict with Iran. 

As of 19:34 ET (00:34 GMT), West Texas Intermediate (WTI) crude futures for January 2027 delivery slipped 0.2% to US$87.97 a barrel. 

On Wednesday, Brent crude settled US$8.98 lower, down 8.7%, at US$94.62 a barrel. WTI crude fell US$7.97, or 8.3%, to US$88.12. Both benchmarks closed at their lowest levels since August 31, 2026. 

US Election Results Weigh on Oil Prices 

The sharp decline followed Democratic victories in both the House of Representatives and Senate. The results weakened Trump's political position and raised expectations that Congress could restrict funding for military operations, increasing pressure on the administration to pursue a negotiated settlement with Iran. 

Trump acknowledged that the conflict had contributed to his party's electoral defeat. Vice President JD Vance also questioned the political and economic costs of the war. 

Iran Peace Hopes Raise Prospects of Supply Recovery 

Investors are considering whether diplomatic progress could ease restrictions on oil shipments through the Strait of Hormuz, a vital route for global energy supplies. 

However, hopes of an immediate agreement remain uncertain. Qatar has increased mediation efforts between Washington and Tehran, but a senior Iranian official told Reuters that both sides remain far from reaching a settlement. 

Trump said the US had no immediate plans for further strikes against Iran. However, Washington carried out limited strikes on Iran's Qeshm Island earlier this week, describing them as defensive operations. 

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US Crude Inventory Data Offers Some Support 

US Energy Information Administration data showed crude inventories fell by 865,000 barrels in the week ended October 30, 2026.  

Gasoline inventories dropped by 222,000 barrels, while distillate stockpiles, including diesel and heating oil, declined by 3.565 million barrels. 

Conclusion 

Oil prices remain sensitive to developments in the US-Iran conflict, particularly the possibility of a diplomatic settlement and the reopening of supply routes. Meanwhile, US inventory data continues to provide fresh insight into domestic fuel demand and supply conditions. 

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