The price of crude oil continued to slump early Thursday, falling to $94 a barrel as traders bet that Democratic control of the U.S. Congress will trigger a renewed push to end the war with Iran. The decline follows a period of volatility in which oil prices initially climbed before reversing on expectations that Washington will prioritize a diplomatic settlement over further military escalation.
The downward move extends a series of losses from Wednesday, when Brent crude fell 2.9% to $100.60 and WTI dropped 3% to $93.23. WTI saw a specific one hour crash of 5.5% after Senate Democratic Leader Chuck Schumer vowed to stop the conflict, while Donald Trump stated the U.S. has no immediate plans for strikes. Market analysts suggest a real de-escalation could lower gasoline costs and alleviate inflationary pressures for U.S. consumers.