US midterm election results: Can Trump's setback ease gasoline prices as oil markets bet on Iran war de-escalation?

US midterm election results have brought a potential reprieve for US motorists grappling with high gasoline prices, as crude oil prices have declined following the elections. The drop in crude prices, driven by hopes of an end to the war in Iran, has led to expectations that the national average gasoline price could fall below $4 per gallon in the coming days.

US President Donald Trump acknowledged that the conflict had raised fuel costs, which had become a political liability for his party, and that voters were reluctant to bear the higher costs. The Republican losses in the midterm elections and Democratic control of Congress have increased pressure on the Trump administration to limit war spending or seek a deal with Iran.

While Democratic control of Congress could make it harder to secure funding for the military campaign, Trump could maintain the current posture or pursue diplomacy. However, renewed escalation could push oil prices back up, and the immediate impact has already been seen in energy markets, with Brent crude falling 8.3% and US benchmark West Texas Intermediate declining by a similar margin.

Brief written by urgent.news from Live Mint's own syndicated text. Machine-written — may contain errors; check the original before relying on it.