Oil prices have sunk around seven per cent, on the eve of crucial midterm elections in the United States, as signals that Tehran and Washington are renewing dialogue boost hopes of ending the war, AFP reports.
Earlier, the Axios news outlet reported that US Vice President JD Vance had sent a letter to Iranian national security chief Mohsen Rezaei about possible new talks. That was the highest-level move from the administration of US President Donald Trump in months.
“We believe the (Trump) signals may be tactical ahead of tomorrow’s US midterm elections,” noted Arne Lohmann Rasmussen, chief analyst at Global Risk Management. “Meanwhile, attacks on shipping in the Strait of Hormuz continue (and) we maintain our higher-for-longer outlook for energy prices.”
Nevertheless, share prices of energy majors have dropped, while many other sectors are boosted by the cooling fuel costs.
Traders are also focused on Tuesday’s midterms, with Democrats expecting to win at least partial control of Congress that would impose political constraints on Trump for the first time in two years.
