WASHINGTON (dpa-AFX) - Partially offsetting the nosedive during yesterday's session, crude oil prices have surged on Thursday as investors are watching out for the next steps that the U.S. regime plans to take to resolve the U.S.-Iran standoff. Experts are divided on whether the U.S. will embrace diplomacy to end the hostilities or adopt an aggressive campaign in the coming days.
WTI Crude Oil for December delivery was last seen trading up by $2.29 (or 2.60%) at $90.41 per barrel.
After the debacle in yesterday's midterm elections for the Republican party, crude oil prices nosedived amid increased expectations of the U.S. ramping down its aggressive measures against Iran.
However, with no concrete message from the U.S. on how it is planning to deal with Iran, the geopolitical risk premium returned to crude oil prices again.
On Tuesday, Americans voted for 435 members of the House of Representatives and 35 in the Senate.
Yesterday, the counting began and results started coming in.
Maintaining a clear lead from the beginning, the Democrats won at least 54 Senate seats while Republicans are projected to hold 44 seats.
The Democrats also took control of the House of Representatives, winning at least 240 seats. In addition, 28 of the Governor positions tilted to the Democrat's favor.
While U.S. President Donald Trump acknowledged the fact that the U.S. war with Iran was partly a cause for his party's lackluster performance, U.S. Vice President JD Vance fully attributed the Iran war as the primary reason for Republican voters to choose Democrats.
Following this, expectations ran high on a possible U.S. withdrawal of troops from the Middle East region.
Traders increased their bets on a diplomatic resolution to the U.S.-Iran crisis instead of a military offensive.
As a result, supply concerns and oil-linked inflation pressure disappeared yesterday, causing a freefall in crude oil prices.
However, today the uncertainty prevailing on how the U.S. would move against Iran prompted investors to trade cautiously. The Strait of Hormuz continues to remain closed.
Iran has warned vessels to sail through the strait only through routes designated by Iran. Incidents of tankers being attacked when they navigate routes through Omanian waters have increased.
Today, re-asserting its authority over the strait's management, Iran's Islamic Revolutionary Guard Corps announced that two oil tankers and a tugboat caught fire while transiting the channel.
Yesterday, the IRGC stated that four oil tankers were destroyed after hitting naval mines in an area south of the Strait of Hormuz.
Investors are assessing the possible measures Trump could adopt against Iran against the backdrop of yesterday's election results.
One, he could order the troops to pull out and return to the U.S.
Second, Trump can maintain the status quo and leave both the naval blockade on Iranian vessels as well as the economic sanctions unchanged, and thereby pressure Iran to come to the U.S. terms. This strategy is likely to yield results but only after a few months.
If Iran refuses to budge to the U.S. squeezing and places more demands (considering Trump's current political weakness), the crisis could go on and on for a few more months.
Thirdly, Trump could order a full-scale or a limited bombardment of Iran with an aim to finish what he started.
If the U.S. wins, it could force Iran to agree to a series of demands and accomplish its aim of getting cheaper oil and energy from Iran for decades.
The prevailing uncertainty supported crude oil prices on the upside.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
