Front-month WTI crude futures slipped 0.4% to $87.77 a barrel, while Brent crude fell 0.2% to $94.64. This follows an 8% drop overnight, as market participants reacted to the election outcome. MUFG strategist Lloyd Chan noted that the results represent a significant shift in the political landscape, prompting a re-evaluation of risks that had previously pushed prices upward. President Trump and Vice President JD Vance both pointed to the ongoing Iran war as a primary driver for Republican losses in the midterms.

Despite the market's optimism, analysts at ANZ caution that the sell-off may be premature. They highlight that the fundamental risks of escalation in the Middle East persist, particularly given Iran’s continued control over the Strait of Hormuz, which remains a choke point for global oil supplies. The downward pressure on energy prices rippled through Asian markets, with PetroChina and Sinopec dropping 5.5% and 2.0% respectively, while shipping firms like Mitsui O.S.K. Lines faced a 7.9% decline.

Beyond energy, the election results created a broader divergence in Asian tech stocks. Investors are now weighing the potential for future AI regulation, causing chipmakers like SK Hynix and Samsung Electronics to track the losses seen in U.S. semiconductor shares. As equity markets struggle with this uncertainty, capital has shifted toward precious metals, with gold climbing 1.5% to $4,120.22 an ounce as inflation expectations soften.