Oil prices drop below $100 as midterms fuel hope for an end to the Iran war

Oil prices dropped sharply Wednesday, propelled by growing hopes for a resolution in the Iran war.

European Brent crude fell below $100 per barrel for the first time since Oct. 7. The move translated to a nearly $8 drop, or an 8.3% decline. U.S. crude oil, or West Texas Intermediate, also slipped 8.3% to close at about $88.12. It was oil’s biggest daily decline since April.

Relief for consumers may follow. Oil’s fall could bring the national average price of gas down below $4 in the “days ahead,” Patrick De Haan, an analyst at GasBuddy, said.

Prices moved lower as trading desks and energy experts watched closely for a sign that Tuesday’s midterm election results would pressure President Donald Trump into ending the Iran war without a major escalation. The war sent gasoline and diesel prices skyrocketing, making already stubborn inflation worse for American consumers, farmers and business owners.

“The next six weeks typically deliver one of the most hostile environments for higher gasoline and diesel prices,” Tom Kloza, chief energy adviser to Gulf Oil, said on social media. “If the US or Iran don’t pursue ‘scorched earth’ policies in the Persian Gulf, we may see considerably lower prices by…

Original source: https://www.nbcnews.com/business