Oil plunges as traders price a US-Iran settlement

· Oil & Gas · United States · Iran

Brent crude crashed nearly 9% on Wednesday, with the front-month price falling $8.94, or 8.6%, to $94.66 a barrel at 1:06 p.m. ET after touching its lowest level since September 4. WTI dropped $8.01, or 8.3%, to $88.08. The benchmark had traded near $118 on Friday. Earlier in the session Brent had already fallen $3.04, or 2.9%, to $100.60, its third straight loss, while WTI slipped 3% to $93.23 and Murban shed $1.27 to $100.90, as traders began pricing a U.S.-Iran settlement and discounting the threats surrounding it. The sharper afternoon slide came after the White House tied Tuesday's midterm election losses to the Iran conflict, with President Trump and Vice President Vance blaming the war. The move shows how heavily oil prices now hinge on the trajectory of the war and any diplomatic off-ramp.

Why it matters：Crude benchmarks are now trading almost entirely on war and diplomacy headlines rather than fundamentals, so any credible US-Iran deal would reprice global energy costs and producer revenues within days.

Key points

  • Brent briefly touched its lowest level since September 4 before settling the move around $94.66.
  • The selloff accelerated after the White House linked Tuesday's midterm losses to the Iran war.
  • Brent traded near $118 on Friday, underscoring the size of the two-session reversal.

Sources (original reporting)

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