Brent crude falls 8.7% to $94.62 after the US midterm results

Oil prices have swung sharply for weeks on news about the war involving Iran and the closure of the Strait of Hormuz, a narrow channel through which a large share of the world's oil normally passes. Brent was above $114 a barrel on 29 October; by Wednesday evening it had settled at $94.62, down $8.98 in a single day. The trigger this time was American politics. As votes from Tuesday's midterm elections were counted, news agencies projected that Democrats had won both houses of Congress. Traders read this as a sign that pressure on the White House to wind down the conflict would grow, and President Trump told the Financial Times there were no immediate plans for further strikes. Vice President Vance was reported to have blamed the war for the losses. Nothing has been settled, though. Reports earlier this week, based on unnamed sources, said the US had approved a Qatari draft for an interim deal, but no government has confirmed an agreement, and a senior Iranian official told Reuters the two sides were far from one. Iran's Revolutionary Guards also said four tankers caught fire after hitting mines in the strait. For India, which buys most of its oil abroad, cheaper crude is a relief, but the price can reverse quickly.