Crude oil traded near $88 per barrel on Thursday, after tumbling more than 8% in the prior session to a one-month low. The sharp selloff followed a Democratic sweep in the US midterm elections, which heightened expectations that the Trump administration could come under growing pressure to wind down the war with Iran.
President Donald Trump acknowledged that Republicans suffered electoral setbacks in large part because of the conflict, and he cited rising gasoline prices as a key factor. Still, he signaled no immediate intention to intensify military strikes against Iran.
With Democrats now in control of Congress, lawmakers could move to restrict military funding for operations in the Middle East. Senate Minority Leader Chuck Schumer has pledged to press for an end to the conflict.
At the same time, crude exports from the Persian Gulf have started to recover, with supply now outstripping near-term demand. As a result, the US crude benchmark is down about 15% so far this week.
