Oil prices have marked significant decline in international markets, dropping below $90 per barrel at a time when investors are praising the possibility of ending the war with Iran.
The decline in prices comes after the Democrats win in the mesmandat elections in the United States, a result that may increase pressure on President Donald Trump to end the conflict.
The gross American oil, known as West Texas Intermediate ( WTI, closed on Wednesday to $88.12 per barrel, registering more than 8% in one day. Compared to Friday’s closure, the price has dropped for about $16.
The three – day decline of approximately 15% is the largest since November 2021. Meanwhile, Brent oil, which serves as reference to the international market, has descended to the lowest level of the last two months.
According to Wells Fargo Investment Institute analysts, the election result could exert pressure on Trump to demand the quick end of the war.
Although diplomatic signals remain unclear, markets are reacting to expectations for lowering tensions in the conflict with Iran. Mark Hackett, the main strategist of markets in Nationwide, said prices are falling due to hopes for a more limited escalation of conflict.
The decline is not limited to crude oil. The future contracts for gasoline are approaching the lowest closing level since March 10th, while the Energy Select Sector fund is approaching The SPDR has lost more than 5%. Even oil processing companies, Marathon Petroleum and Valero, have registered significant reductions in stock value.
Despite the decline of the last days, however, the price of oil remains markedly higher than at the beginning of the year. WTI began 2026 in about $57 a barrel, and on April 7, it peaked at approximately $33. Therefore, the current price continues to be about 50% higher than at the beginning of the year.
Markets are carefully following political developments in Washington, as the outcome of the elections may affect the American administration’s stance on the conflict with Iran.
Meanwhile, fuel supplies continue to remain limited, while American diesel reserves have declined to the lowest level since 2003.
In this situation, the recent drop in prices reflects mainly the expectations of markets for reaching an agreement and lowering tensions, though so far such development has not concreteised.
Source Layer: Insander