Oil falls more than 14% in a week as the US and Iran talk and Vance blames the war for midterm losses
CNBC's daily oil reports trace a fast reversal: from pricing in post-election strikes on Iran to betting on a deal.
Crude prices dropped sharply in the first days of November. Oil fell more than 7% on Monday, November 2, after Washington and Tehran signaled openness to a settlement, and fell again Tuesday, with Brent settling at $103.60 and WTI at $96.09, CNBC reports. CNBC also cites a Wall Street Journal report that the US struck Iran's Qeshm Island on Monday as part of 'limited strikes' in recent weeks.
On Wednesday, after Democrats swept Congress, Vice President JD Vance posted 'The reason we lost is the war.' WTI fell 8.3% to $88.12 and Brent 8.7% to $94.62, leaving oil down more than 14% for the week. Analysts told CNBC the market now expects Trump to have a bigger incentive to make a deal; Trump told the Financial Times he had no immediate plans to strike Iran. Others warned the selloff may be overdone and that escalation risk remains, with ship attacks continuing in and around the Strait of Hormuz.
Across the spectrum 3
Democrat
In a Nov. 4 letter launching his bid for speaker, Hakeem Jeffries wrote that "House Democrats must act to reverse the Medicaid cuts, restore SNAP funding, extend the Affordable Care Act tax credits, eradicate the Trump tariffs and stop the reckless war of choice in Iran," NBC News reports.
NBC News ↗Libertarian
Reason's Eric Boehm argued "it wasn't all about the war," saying Vance was "conveniently pinning all the blame" on the one decision he had questioned, and pointing to an NBC exit poll in which just 21 percent of voters said the tariffs helped the national economy and more than 60 percent said they caused harm.
Reason ↗Republican
Asked about Vice President Vance's view that the Iran war cost Republicans Congress, President Trump said it is "largely true" because the war drove up gasoline prices, but added "If I had to do it again, I'd have to do it again" and "You can't let Iran have a nuclear weapon."
CBS News ↗-
Brent Crude
After exploring Crude oil prices fall below $90 a barrel as Vance blames GOP election defeat on Iran war, to see why traders quote this one price, read Brent Crude.
Wikipedia describes Brent as the world's most widely used benchmark for crude oil prices, and explains the light, low-sulfur crude it originally referred to.
Wikipedia · Wade · 5 min
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Strait of Hormuz
After exploring Crude oil prices fall for second day as market hopes for diplomatic resolution to Iran war, for the geography behind the price swings, explore Strait of Hormuz.
Wikipedia covers the waterway between the Persian Gulf and the Gulf of Oman, with Iran on its north coast and Oman's Musandam Peninsula on the south.
Wikipedia · Swim · 30 min
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