Oil Prices Drop 8% Following U.S. Midterm Election Results

Oil prices fell over 8% overnight and continued to decline in early Asian trade on November 5, 2026. Front-month WTI crude-oil futures dropped to $87.77 a barrel and Brent fell to $94.64 a barrel, driven by investor expectations that a Democratic sweep in the U.S. midterm elections will lead to an end of the war with Iran.

Despite the price drop, analysts from ANZ cautioned that the market reaction may be unwarranted. They cited ongoing risks of escalation and the fact that Iran maintains control of the Strait of Hormuz, which has constrained oil flow.

Ship-tracking data shows that crude oil exports from the Persian Gulf averaged 17.1 million barrels a day in October, marking a decrease from September levels.