Brent crude falls more than 8% to near $95, European gas also loses ground

Mediation efforts over the Iran conflict continue. Oil has dropped below $100 for the first time in a month.

Brent crude fell more than 8% on Wednesday to close in on $95 a barrel. Qatar and Pakistan are continuing their mediation to end the US-Iran war, and prices have now declined for a third consecutive session.

At 18:50 GMT, Brent was down $8.55 (8.25%) at $95.05, its first drop below $100 in a month. US West Texas Intermediate crude fell $7.81 (8.13%) to $88.28.

European natural gas prices also reversed earlier gains. Dutch TTF futures had traded above €93 earlier in the day but later fell €6.03 (6.58%) to €85.58 per megawatt-hour ($96).

Divergent positions after the elections

The price drop came just hours after Democrats won control of the US Congress in the midterm elections. President Donald Trump and Vice President JD Vance have taken different views on whether the war is worth its political cost.

In a post on X, Vance linked the Republican defeat to the war. He said that those who had called for the conflict to end sooner had been giving sound advice. He also noted that polls show ending the war is a priority for voters who backed Trump in 2024 but turned away from Republicans on Tuesday.

Trump told reporters on Wednesday that the war was worth continuing despite the election setback. In an interview with The Wall Street Journal, he acknowledged that the conflict had caused losses and that rising oil prices were part of that. “I did the right thing. I would do it again,” he said.

Negotiations

Qatari Foreign Ministry spokesman Majed Al-Ansari said on Tuesday that a Qatari delegation held three hours of talks with Iranian officials in Tehran on Monday. Washington and Tehran are now reviewing proposals. According to Al-Ansari, both sides’ willingness to continue talks offers a “glimmer of hope,” although the mediators have yet to make progress.

He also condemned the targeting of the Qatari gas carrier Al-Mayeda. Al-Ansari said attacks on vessels in the Gulf threaten regional security and the delicate negotiations.

Gas storage

Cold weather forecasts for northwestern Europe could raise heating demand, yet gas prices fell. Europe’s gas storage was less than 75% full. In Germany, storage stands at about 61%, which is below the government’s 70% target.