Oil prices fell sharply on Wednesday, as European Brent crude fell below $100 a barrel for the first time since October 7.
This move resulted in a drop of almost $9, a decline of more than 8%. U.S. crude oil, or West Texas Intermediate, also fell 8% to around $89.
Relief for consumers could follow. The drop in oil could bring the national average gas price below $4 in the “coming days,” said Patrick De Haan, an analyst at GasBuddy.
Prices fell as trading desks and energy experts closely watched any signs that the results of Tuesday’s midterm elections would pressure President Donald Trump to end the war in Iran without major escalation. The war caused gasoline and diesel prices to skyrocket, worsening already stubborn inflation for American consumers, farmers and business owners.
“The next six weeks will generally be one of the most hostile environments for higher gasoline and diesel prices,” Tom Kloza, chief energy advisor at Gulf Oil, said on social media. “If the United States or Iran do not continue their ‘scorched earth’ policy in the Persian Gulf, we could see a considerable drop in prices by the second half of December. »
As of Wednesday morning, that average price was $4.12. That’s 39 percent more than before Trump and Israeli Prime Minister Benjamin Netanyahu launched war against Iran on Feb. 28, which put a halt to maritime traffic through the Strait of Hormuz.
On social media, Vice President JD Vance said the war was the reason the Republican Party suffered such significant losses in the midterm elections.
“And any honest conversation about where we go from here has to start there,” said Vance, who could be the Republican Party’s standard-bearer in the 2028 presidential election.
Trump also said he was aware of the harmful consequences of the war in Iran on American consumers.
“I think it’s the price of gas,” Trump said Tuesday night on Fox News as early results became clear. “People agree with what I’m doing on Iran, but they probably weren’t willing to deal with the short-term consequences of paying more for gas, and you know, I understand that.”
Oil’s fall over the past three trading sessions has been steep. On Friday, it was trading as high as $118 per barrel, but by midday on Wednesday, prices were around $98.
Despite this sharp drop, the overall price of oil remains 65% higher than at the start of the year.
On Tuesday, 59% of voters who went to the polls told NBC News in an exit poll that they were “very concerned” about the cost of gasoline and diesel, echoing concerns consumers have been expressing for months.
But diesel fuel prices worry economists much more.
U.S. diesel futures also fell on Wednesday. From midday, prices fell by almost 7%, to their lowest level since the end of August. This likely means further relief is on the way for prices at the pump.
As a fuel that powers goods transportation services, such as groceries, any price increases across the country could quickly ripple through the economy through higher prices on store shelves.
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