Foreign media reports indicate that global crude oil prices are tumbling sharply following President Trump's loss of a majority in the US Congress and rising expectations that a war between Iran and the United States will be averted.

The benchmark Brent crude oil price has dropped past the 95 US dollar mark, while the price of a barrel of WTI crude has also fallen below the 89 US dollar limit.

Key points:

  • Control of Congress slips from Republicans to Democrats
  • Brent crude falls below 95 dollars and WTI crude drops below 89 dollars
  • Hopes for an end to the US-Iran conflict contribute to the price decline

Trump's diminished power and the Iran crisis

With Republicans losing control of Congress and the opposition Democrats securing a majority, obstacles have arisen for Trump in taking decisions at his own discretion and passing new legislation.

Prior to the election, Trump had warned that if his side won, he would strike and pulverise Iran. Israeli Prime Minister Benjamin Netanyahu had also stated that he would support Trump in destroying Iran. However, in the Israeli election held on October 27, Netanyahu's coalition likewise failed to secure the majority required to form a government.