Oil slides as Republican midterm losses fuel hopes of Iran conflict exit
Crude fell after Vance linked Republican midterm losses to the Iran war, boosting expectations of a US exit from the conflict.
Trump claims Iran war ending soon. Tanker hit in Strait of Hormuz. Senator Murphy warns of 'insane' US war plan.
US President Donald Trump has repeatedly stated that the war with Iran will conclude very soon, making that claim at least 100 times since hostilities began in late February. Rather than a planner, he is an improviser. As the situation soured, he has sought a graceful way out without success. The blockade might provide some negotiating leverage, but the rise in oil prices is making the conflict deeply unpopular.
In a separate development, the United Kingdom Maritime Trade Operations (UKMTO) reported that an unknown projectile struck a tanker while it was completing an outbound passage through the Strait of Hormuz. No injuries to the crew have been reported, and no environmental impact has been noted so far.
The current situation cannot persist forever; the next step is either escalation or negotiation. The US appears to be postponing any attack until after the midterm elections, though some observers predict a move in late November once another aircraft carrier arrives.
Refined oil product prices remain extremely high, while crude oil has dropped 79 cents to $101.98 a barrel today.
Connecticut Senator Chris Murphy, a Democrat who serves on the Senate Foreign Relations Committee and the defense appropriations subcommittee, issued a troubling warning:
Trump is reportedly planning to restart war with Iran after the election. Some of us have been briefed on the war plan. And while I cannot disclose any details, I can say this: the plan is insane. It will not achieve objectives and will set off a new cycle of escalation.
This is indeed an ominous statement. Murphy added that the plan undermines the US commitment to the rule of law and would target civilian infrastructure.
"I will just say this - their plan is insane ...it will lead to devastating escalation and the likely destruction of our commitment to the rule of law. There has been open reporting as to the civilian infrastructure we may be targeting…. I think the plan they have developed will lead in my view to a prolongment and escalation of this war that will be devastating to our security interests"
Leaked information indicates potential targets:
Electricity generation and transmission facilities
Bridges and transportation networks
Oil refineries and energy infrastructure
Potentially other infrastructure essential to civilian life
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Crude fell after Vance linked Republican midterm losses to the Iran war, boosting expectations of a US exit from the conflict.
Gold broke above a key trendline after Vice President Vance's comments on Iran fueled de-escalation bets, opening potential rally to 4,700.
Gold prices rose over 6% this week after Democratic midterm wins. The metal recovered above $4,000 and now faces a test at $4,200.
Oil prices dropped after the Democrats won the midterms. WTI crude now tests a key support region near moving averages.