Oil dips 9%, Wall Street rallies as Democrats sweep midterms

Oil prices plunged on Wednesday, with Brent down 8.9% to $94.29 a barrel and US WTI off 7.8% at $88.54, as markets reacted to the US midterm election outcome and developments in the war involving Iran. The Express Tribune reported that Brent briefly reached its weakest level since September 4.

US equities advanced broadly as Democrats’ victory reduced uncertainty around major legislative changes, although shares linked to data-centre construction fell amid concerns about stricter AI rules. The dollar also lost ground against most currencies, while yields on longer-dated US Treasuries declined.

Investors were weighing whether the election result could affect Washington’s next steps in the conflict. President Donald Trump said the war had contributed to his party’s defeat, while defence companies Northrop Grumman, RTX and Lockheed Martin dropped as his proposed $1.5 trillion defence budget could encounter greater congressional resistance.