Crude oil prices rose on Thursday for the first time in four sessions, rebounding to about $89.50 a barrel after plunging more than 8% in the previous session to a near two-month low. Market participants are weighing whether the Democrats’ sweep of Congress in the US midterm elections could improve the outlook for a diplomatic solution to the conflict with Iran.
US Vice President JD Vance noted that voter frustration over the war and over Washington’s relationship with Israel contributed to the Republicans’ electoral defeat. Ahead of Tuesday’s vote, President Trump had said he had no immediate plans to escalate military strikes.
Even so, geopolitical risks to supply remain elevated, despite a recovery in exports from Gulf producers. Heightening concerns, Iran’s Islamic Revolutionary Guard Corps reported on Thursday that two oil tankers and a tugboat had caught fire in separate incidents after allegedly attempting to transit unauthorised routes through the Strait of Hormuz.
