US gas prices drop after midterm elections as oil falls below $100 - But will the relief last?

Americans are finally getting some relief at the gas pump as fuel prices continue to fall across the country. Brent crude oil slipped below $100 a barrel on Wednesday (November 4), following the 2026 US midterm elections. The decline has brought some welcome relief to common man struggling with high gasoline costs. With hopes growing that tensions surrounding the Iran war could ease, there is renewed optimism about further price cuts. However, the big question is whether this relief is going to be a long-term one, or a temporary one.

WHY ARE US GAS PRICES FALLING AFTER THE MIDTERM ELECTIONS?

According to WUSA9, prices for oil fell below $100 per barrel last Wednesday amid hopes that the situation could be eased up with Iran after midterm election victories for Democrats.

However, Patrick De Haan of GasBuddy, as quoted by WUSA9, said that the election results alone would not quickly solve the geopolitical issues causing oil prices to rise.

"The election happened. Americans spoke. But it doesn't necessarily immediately change the geopolitical tensions that have delivered the high prices."

The national average price for regular gasoline was $4.02 per gallon on Sunday, reported WUSA9, which was about 34 cents lower compared to last month.

At the same time, WHAS11 noted that the national average stood at $4.04 per gallon, which is about an eight-cent decrease since Election Day. Moreover, it was reported that premium gas dropped to $5 per gallon. Motorists in Kentucky paid $3.77 per gallon, while those in nearby Indiana paid $3.64 per gallon.

As per GasBuddy, the overall falling trend started way back in the last week of October, which indicates that it cannot be solely pinned on the election.

WILL GAS PRICES CONTINUE FALLING AMID THE IRAN WAR?

Despite this latest respite, the world’s oil market is still vulnerable to any development from the Middle East. According to WUSA9, the Iran war has caused serious disruption of marine transport in the vital Strait of Hormuz, a crucial route for international oil shipments. Reports of renewed attacks on vessels have further complicated the outlook.

The Russia-Ukraine conflict is also contributing to uncertainty, particularly as Ukrainian strikes target Russian refineries.

WUSA9 reported that President Donald Trump reached an agreement with Russian President Vladimir Putin to increase Russian diesel supplies to global markets by more than 10 million barrels this fall.

However, Kpler analyst Matt Smith questioned whether the additional supply would significantly influence prices.

"In the grand scheme of things, it is very small. US demand for diesel is about 4 million barrels per day."

According to WHAS11, Vice President JD Vance also blamed the Iran war as a reason for Republican defeats in the midterms.

For Americans, falling prices are good news, but continued declines will probably have to wait until tensions are eased and oil supply lines are reopened.