Oil Prices Drop 9% as President Trump and Vice President Vance Cite Iran Conflict After Midterm Results

Brent crude declined $8.94, or 8.6%, to $94.66 a barrel by early Wednesday afternoon, after reaching its lowest level since early September. WTI fell $8.01, or 8.3%, to $88.08. The price moves followed remarks from President Trump and Vice President JD Vance that connected the Iran conflict to the Republican losses in Tuesday’s midterm elections.

"I think it’s the gasoline price," President Trump told Fox News when asked about the defeat. Vice President Vance wrote on X that the war was the reason for the losses and that "any honest conversation about where we go from here must start there."

Analysts noted that Middle-East export trends and the officials’ statements were adding pressure on crude markets. Dennis Kissler of BOK Financial said Democratic control of Congress could lead to tighter U.S. military spending in the region and potentially accelerate a peace settlement. Carl Larry of Enverus warned that an escalation with Iran could occur before a resolution is reached.

The Energy Department announced a loan of 300,000 barrels from the Northeast Home Heating Oil Reserve to four companies in an effort to ease diesel price pressures, after senators urged action following diesel prices above $6.50 per gallon. Heating-oil futures fell about 7% after the announcement.

U.S. crude inventories dropped 900,000 barrels to 409.8 million in the week ended Oct. 30, 4% below the five-year average, while distillate stocks fell 3.6 million barrels, 13% below the five-year average, according to the EIA. Gulf exports of crude, condensate and products averaged 17.1 million bpd in October, down from 18.9 million bpd in September.