Watch: What happens now after close vote in Israeli election?
Polls have closed in the Israeli election, but there is no clear winner.
Oil prices experienced a two-day decline as market participants monitored the outcome of the Israeli parliamentary election. West Texas Intermediate oil steadied near $100 per barrel, after plummeting more than 3% over two sessions. Brent crude closed below $114. Opposition leader Gadi Eisenkot edged slightly ahead of incumbent Prime Minister Benjamin Netanyahu, setting the stage for a tense negotiation period to determine who will form the next Israeli government.
The closely watched vote unfolded amid ongoing diplomatic efforts in the Middle East, with officials from Saudi Arabia, Pakistan and Turkey traveling to Tehran for talks on Iran's role in the escalating conflict. Despite these diplomatic moves, Supreme Leader Ayatollah Khamenei reiterated Iran's existing conditions for ending the war.
The Israeli election has significant implications for the US war in Iran, as the country's political landscape could potentially shift the course of military operations. Opposition leader Eisenkot campaigned as a more moderate alternative to Netanyahu, emphasizing Israel's security concerns while remaining cautious about regime change in Tehran.
However, Netanyahu's leadership remains assured for now, allowing him to potentially join forces with outgoing US President Trump in a renewed bombing campaign against Iran post-midterms.
Meanwhile, in the US, President Trump urged patience regarding high energy prices, attributing them to the ongoing conflict in the region. Robert Yawger, director of energy futures division at Mizuho Securities USA, warned that the Israeli election could foreshadow similar developments in the upcoming US midterm elections, potentially weakening the Trump administration's support base.
Oil market risks remain elevated due to persistent threats against Saudi Arabian energy infrastructure from Iran-backed Houthi rebels. A recent attack near the kingdom's primary oil export terminal at Ras Tanura sparked a fire, though the extent of damage is still unclear. Iran's Persian Gulf Strait Authority has also threatened legal action against certain vessels over alleged violations in the Strait of Hormuz, where American Petroleum Institute reported a two-million-barrel decline in US crude stockpiles last week.
As the Federal Reserve holds its interest rate decision, traders will closely monitor developments in both the Middle East and US energy markets.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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