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 deescalation in the Iran war.

Brent crude traded slightly above $94.50 a barrel in the early hours of Thursday morning, sliding over $10 from around $104.67/bl on Wednesday morning, and breaking below the psychological $100/bl 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, it could mean cuts in petrol and diesel prices by December and ahead of the festive season.

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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 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.

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The rand strengthened over 1% against the dollar on Wednesday, and firmed further early on Thursday morning, trading around R16.37 to the greenback (at 3.30am).

Investors and economists will be closely watching the rand, dollar, as well as the JSE on Thursday, with SA markets reopening after the public holiday due to local government elections held on Wednesday.