The retreat did not stem from a sudden demand collapse or an unexpected rise in inventories. Instead, traders reassessed the risk that the war would disrupt oil supplies, particularly through the Strait of Hormuz, which had helped support prices for months and pushed them toward October highs.

The sharpest selling came after Democrats regained control of Congress. The result raised expectations of political gridlock in Washington and the possibility that a Democratic Congress would press the White House to wind down the war, according to the market interpretation described in the report.

High gasoline prices had become a major political issue. Vice President JD Vance blamed the conflict for Republican losses, while President Trump said there were no immediate plans for new strikes against Iran. Traders saw those developments as reducing the likelihood of another major escalation, prompting aggressive profit-taking.