Athira Sethu
Kochi, 6 November 2026
Oil prices around the world saw their fourth day in a row of declines amid optimism among traders over the likelihood of a peaceful resolution to the war currently going on between the US, Israel, and Iran.
The drop occurred after the defeat of US President Donald Trump’s Republican Party in the Congressional elections. Investors believe that this would decrease the likelihood of further military actions against Iran.
Brent crude prices declined by 1.03% to $93.65 per barrel, while West Texas Intermediate crude from the US decreased by 1.29% to $86.98 per barrel.
Both crude oil prices saw a fall of more than 8% in the previous trading session to reach their lowest since August 31.
Election Results in the US Increase Expectations for Peace
Recent results of the election in the US have increased hopes of increased pressure on President Trump to look for a peaceful way to settle the Iran crisis.
As the Democrats increase their strength in Congress, it becomes harder for the US to continue with its military actions.
According to sources close to Gulf governments, the likelihood of an attack on Iran is now low.
Nevertheless, the situation is still not certain.
Middle East Oil Supply Rebounds
Oil shipments via the Strait of Hormuz, one of the world’s critical oil transportation hubs, have begun to revert to normalcy.
A considerable amount of oil is transported from the Middle East region through the Strait of Hormuz.
As per JPMorgan, the rebounding oil supply from the Strait of Hormuz has boosted the global oil supply following months of supply disruptions.
The bank reported that the global oil supply surpassed demand by 1.1 million barrels per day in September. It rose to 1.4 million barrels per day in October.
The higher oil supply has assisted in reducing international oil prices.
Falling US Oil Reserves
According to a report by the US Energy Information Administration, oil inventories have fallen in the past week.
The reduction is amid an increase in fuel consumption to record levels in one year.
While there are higher expectations of peace and oil supply from the Middle East to pull down oil prices, future prices will be dictated by what happens in the Iran crisis and oil demand-supply situation.
