Brent crude plunges 10% after Trump midterm rebuke

Prospects for fuel price cuts by December. The price of Brent crude plunged around 10% over the past 24 hours, following President Donald Trump and the Republican Party’s massive loss in the US midterm elections on Wednesday, which has sparked hopes for a de-escalation in the Iran war. Brent crude traded below $94 a barrel in the early hours of Thursday morning (3:25am), sliding over $10 from around $104.67/bbl on Wednesday morning, and breaking below the psychological $100/bbl threshold. For South Africans (and the rest of the world) fixated on fuel and energy prices, which have spiked since the start of the Middle East conflict, this could mean cuts in petrol and diesel prices by December, ahead of the festive season. That’s if oil prices remain at current levels and Trump concedes defeat, with no further US military action in Iran. Trump’s administration got trounced in the 2026 midterms on Wednesday, with the Republicans losing control of the US Congress (both the House and Senate). The rebuke – which saw Democrats securing crucial wins in Trump strongholds like Texas, Kansas and ‘the Carolinas’ – follows spiralling oil prices in the wake of Trump’s war in Iran and his backing of Israeli Prime Minister Benjamin Netanyahu. Many Americans are unhappy about the war and the consequent spike in energy prices and the cost of living. Fuel has hit record highs in SA and other parts of the world, which has also seen an increasing number of protests and riots linked to the cost of living, while anti-immigrant violence has also escalated in some countries. Trump’s loss in the US midterm elections also saw the dollar weaken to a two-month low on Wednesday. In SA, that will add further to prospects of fuel price cuts in December, with the rand benefiting from the weaker US dollar. The rand strengthened over 1% against the dollar on Wednesday, and firmed further early on Thursday morning, trading around R16.33 to the greenback (around 4am). Investors and economists will be closely watching the rand, the dollar, and the JSE on Thursday, with SA markets reopening after the public holiday for local government elections held on Wednesday. Sasol is likely to be most watched on the local bourse, considering the oil price plunge. The JSE All Share Index surged over 5% in morning trade by 10:40am on Thursday, while Sasol plunged over 11%. If oil stays lower or falls even further in coming weeks, the South African Reserve Bank will also be better placed to hold interest rates steady at its next Monetary Policy Committee meeting later in November, with prospects for inflation to cool. Some US market commentators are already expecting the US Federal Reserve to hold rates at its next meetings, with inflation also expected to cool in that market. This article was republished from Moneyweb. Read the original here.