Oil prices suffered their steepest daily drop in months on Wednesday, with Brent crude falling 8.8% to $94.47 a barrel and US West Texas Intermediate futures declining 8.74% to $87.70. The selloff came as investors reassessed the implications of the Democratic midterm sweep for the conflict involving Iran and the outlook for global energy supplies.
Democrats secured control of both the House and the Senate, while President Donald Trump said the US had no immediate plans to strike Iran. That combination raised expectations that political pressure could push Washington toward a diplomatic resolution, easing fears of supply disruptions from the Persian Gulf. Still, a senior Iranian official indicated that Tehran and Washington remained far from a peace deal, leaving the market on edge.
Qatar stepped up mediation efforts to prevent further escalation, while Yemen's Houthis claimed to have targeted King Khalid International Airport in Riyadh, though Saudi authorities had not confirmed the reported attack. Energy supply data also remained in focus, with Gulf exports of crude, condensate and refined products averaging 17.1 million barrels per day in October, down from September's 18.9 million bpd but still around three-quarters of pre-war levels. In the US, crude inventories fell by 865,000 barrels to 409.8 million barrels in the week ended October 30, according to the Energy Information Administration.
Gold rallies as dollar hits one-month low
Gold prices advanced more than 3% on Wednesday, with spot bullion rising 3.34% to $4,059.39 an ounce and US gold futures for December delivery settling 3.36% higher at $4,072.30. The rally put gold on track for its biggest daily gain since mid-August and pushed spot prices back above the $4,000 level, after falling to $3,869.85 on October 30, its lowest since October 2025.
A weaker US dollar provided support by making dollar-priced bullion cheaper for overseas buyers. The dollar fell to a more than one-month low after Democrats secured Congress, prompting investors to reassess the economic and policy implications of the election results. Attention also turned to upcoming US employment data, with investors awaiting Friday's nonfarm payrolls report for clues about the Federal Reserve's interest rate outlook. Traders were pricing in an 83% chance of a rate increase in December, according to CME Group's FedWatch tool. Other precious metals also advanced.
SpaceX and Tesla shares fall after Democratic gains
Shares of SpaceX and Tesla fell in trading as Democratic victories raised concerns about tighter scrutiny of AI companies and uncertainty surrounding Musk's business expansion plans. SpaceX shares dropped more than 4.9%, while Tesla declined over 2.3%, even as the Dow Jones rose nearly 3%.
The results were a setback for Musk, who contributed approximately $474 million to Republican candidates and political groups during the election cycle. Several candidates he supported, including Ken Paxton in Texas and Vivek Ramaswamy in Ohio, lost their respective races. Texas is particularly important to Musk's businesses, hosting Tesla's largest US vehicle factory and SpaceX's Starbase launch facility. The victory of Democrat Gina Hinojosa in the gubernatorial race could create challenges for new projects, given her opposition to corporate subsidies and support for tighter restrictions on data centres. Investors are also assessing the potential impact of greater congressional scrutiny on Musk's companies and a possible merger between SpaceX and Tesla.
Google extends voluntary buyouts to five more countries
Alphabet has expanded its voluntary employee buyout programme to Canada, France, Germany, Japan and Switzerland as it seeks to manage operating costs while increasing AI investment. The company confirmed that it extended voluntary exit offers to employees in the five countries in June, though the number of workers who accepted the packages remains unclear.
The latest expansion follows earlier voluntary exit programmes introduced across some Google teams in 2025 and subsequently extended to selected employees in the US and UK. The move comes as major technology companies reassess workforce costs while committing substantial capital to AI infrastructure. Microsoft, Meta, Amazon and Oracle have also undertaken workforce reductions or voluntary exit initiatives.
Alphabet's cost management efforts come amid growing investor scrutiny of its AI spending. The company recorded $51.4 billion in capital expenditure in the third quarter, more than double the year-earlier figure. Free cash flow turned negative at $9.1 billion, reflecting heavy infrastructure investment, inventory buildup for its TPU systems, and a European Commission-related payment.
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