Economy

Oil posts steepest weekly drop since COVID as Brent slides to $98 on hopes of an Iran deal

Houston • November 8, 2026 • By Press Pass USA

Oil pumpjacks silhouetted against a sunset sky

Photo: Tim Singley / Fine Art America

Oil prices closed out their steepest weekly drop since the COVID-19 crash of 2020, with Brent crude settling at $98.32 a barrel on Friday — down about 13% on the week — as traders bet that the Democratic sweep of the midterm elections will push Washington toward a deal to end the war with Iran.

Brent crude for January delivery finished Friday up 3 cents on the day at $98.32 a barrel, but down from $113.43 at the October 30 close, according to Dow Jones Market Data. Reuters called it the steepest weekly percentage fall since the start of the COVID-19 pandemic and the biggest drop in dollar terms in LSEG records going back to 1988. U.S. benchmark West Texas Intermediate settled at $90.83 a barrel on Friday, up 0.3% on the day and down about 13% on the week.

The slide was concentrated in the first half of the week. Brent fell 8% on Wednesday alone after Democrats won control of both chambers of Congress, settling at its lowest level in two months. Prices swung in a roughly $19 range over the course of the week, Bloomberg reported, as traders weighed signs of progress toward de-escalation against fresh attacks on shipping in the Gulf.

The driver was politics, not a signed agreement. Traders bet the election result would push the Trump administration toward a diplomatic solution with Iran, unwinding the war premium that had lifted Brent above $117 a barrel the previous week. Bloomberg reported Friday that the United States and Iran had moved closer to a potential breakthrough, with Tehran showing a willingness to discuss nuclear issues that had previously been off the table. No agreement has been announced.

Attacks on oil-carrying vessels in the Gulf and the Strait of Hormuz kept a floor under prices, running at close to record pace, according to maritime-security data cited by Reuters. Friday's choppy session saw prices recover from their lows as fresh tanker attacks revived concerns about supply disruptions, even as the broader trend pointed the other way.

The fundamentals were already leaning against high prices. J.P. Morgan estimated that global oil supply exceeded demand by 1.1 million barrels a day in September and 1.4 million barrels a day in October, as Middle Eastern exports recovered and demand weakened. A seven-member OPEC+ subgroup decided at a November 1 meeting to leave production targets unchanged for the month, limiting further downward pressure.

Traders now turn to a heavy data week: the U.S. Energy Information Administration releases its Short-Term Energy Outlook on Tuesday, the same day the October consumer price report lands, and OPEC publishes its monthly report on Wednesday. If the drop in crude holds, it could eventually bring relief at the pump for American drivers — but for now, the market's message is that the war premium is coming out of the price.

Sources: Reuters, "Brent oil price benchmark set for biggest weekly drop since 2020" (Nov. 6, 2026, via London South East); Bloomberg via Rigzone, "Oil Posts Biggest Weekly Drop Since 2022" (Nov. 6, 2026); Seeking Alpha, "Brent crude caps biggest weekly drop since pandemic as war premium begins to unwind" (Nov. 7, 2026).