Midterms: Oil Prices Rise Following U.S. Attacks in Iran

According to consistent media reports, the U.S. has struck targets on the Iranian island of Qeshm in the Strait of Hormuz. According to these reports, a Revolutionary Guard position on the island was attacked after a missile was fired from there at a U.S. aircraft.

Just hours earlier, President Donald Trump had said that many people believe the war with Iran is coming to an end. The unpopular conflict is driving up the cost of living in the U.S. and poses a threat to Trump in this Tuesday’s midterm elections. Trump claimed that Iran is desperate for a deal. However, media outlets recently reported on plans by the U.S. government to launch new attacks against Iran in coordination with Israel after the midterms.

With this rise, oil prices have halted—for now—the sharp decline seen at the start of the week. Iran’s supreme leader, Mojtaba Khamenei, had given the green light for negotiations that could end the war with the U.S., according to a report by the state-run news agency IRNA.

With the war in Iran, inflation has risen significantly in both Europe and the U.S., primarily due to a sharp increase in gas prices. According to the ADAC, gas prices in Germany reached record highs in September, prompting the federal government to introduce a new gas rebate.

In the U.S., too, high gas prices are weighing on many consumers, putting pressure on Trump's Republicans ahead of the midterms. After all, Trump had promised to curb inflation.

In today's congressional elections, all 435 seats in the House of Representatives and 35 of the 100 Senate seats will be up for election. Currently, Trump's Republicans hold a slim majority in both chambers of Congress. According to polls, the Democrats could win a majority in the House of Representatives, while the outcome in the Senate remains unclear.