Oil prices rose as traders reconsidered whether the results of the US midterm elections will indeed lead to a quick end to the war with Iran. The recovery followed a sell-off on Wednesday, when Brent crude fell $8.98, or 8.7%, to $94.62. WTI crude oil fell $7.97, or 8.3%, to close at $88.12. Both brands recorded their lowest closing prices since August 31. The catalyst was sweeping Democratic victories in both houses of Congress on Tuesday, prompting speculation that President Donald Trump will face increased pressure to end the eight-month conflict with Iran. The chances for a quick end to the conflict in the Middle East have worsened significantly. The Eurasia Group lowered its estimate of the likelihood of reaching an agreement through negotiations to 10% from 20%, and estimated the likelihood of renewed American attacks at 60%. Shipping risks have not disappeared. Reuters reported at least five shipping incidents in the Persian Gulf since Sunday, with threats to commercial ships remaining despite the restoration of oil supplies through the Strait of Hormuz. Iran is considering offers presented through regional mediators, although Washington and Tehran remain at odds over the terms of the deal. Wednesday's collapse was exacerbated by a large-scale liquidation of oil futures, according to market participants cited by Bloomberg. As prices approach technical sell territory, Thursday's rebound may reflect traders reversing some of these positions.

Oil prices rose as traders reconsidered whether the results of the US midterm elections will indeed lead to a quick end to the war with Iran. The recovery followed a sell-off on Wednesday, when Brent crude fell $8.98, or 8.7%, to $94.62. WTI crude oil fell $7.97, or 8.3%, to close at $88.12. Both brands recorded their lowest closing prices since August 31. The catalyst was sweeping Democratic victories in both houses of Congress on Tuesday, prompting speculation that President Donald Trump will face increased pressure to end the eight-month conflict with Iran. The chances for a quick end to the conflict in the Middle East have worsened significantly. The Eurasia Group lowered its estimate of the likelihood of reaching an agreement through negotiations to 10% from 20%, and estimated the likelihood of renewed American attacks at 60%. Shipping risks have not disappeared. Reuters reported at least five shipping incidents in the Persian Gulf since Sunday, with threats to commercial ships remaining despite the restoration of oil supplies through the Strait of Hormuz. Iran is considering offers presented through regional mediators, although Washington and Tehran remain at odds over the terms of the deal. Wednesday's collapse was exacerbated by a large-scale liquidation of oil futures, according to market participants cited by Bloomberg. As prices approach technical sell territory, Thursday's rebound may reflect traders reversing some of these positions.