Oil prices plunged nearly 9% as investors assessed the implications of the US midterm elections for the war in Iran and the outlook for energy supplies.
Gold climbed more than 3%, supported by a weaker dollar and expectations of potential changes to the Federal Reserve’s policy outlook.
SpaceX and Tesla shares fell as Democratic election victories raised concerns about political and regulatory risks facing Elon Musk’s businesses.
Meanwhile, Alphabet expanded its voluntary employee buyout programme to five more countries as it seeks to manage costs while investing heavily in artificial intelligence infrastructure.
Oil prices fall 8% as markets assess Iran war outlook
Oil prices dropped sharply on Wednesday, with Brent crude falling 8.8% to $94.47 a barrel and US West Texas Intermediate futures declining 8.74% to $87.70.
Brent fell below $100 and touched its lowest level since September 4 as investors weighed the potential implications of the US midterm elections for the conflict involving Iran.
Democrats won control of both the House of Representatives and the Senate, while President Donald Trump said the US had no immediate plans to strike Iran.
The election outcome raised expectations that political pressure could encourage Washington to pursue a diplomatic solution.
However, uncertainty remained over the prospects for a peace deal, with a senior Iranian official indicating that Tehran and Washington remained far from an agreement.
Qatar stepped up mediation efforts to prevent further escalation.
Meanwhile, Yemen’s Houthis claimed to have targeted King Khalid International Airport in Riyadh, although Saudi authorities had not confirmed the reported attack.
Energy supply data also remained in focus.
Gulf exports of crude, condensate and refined products averaged 17.1 million barrels per day in October, below September’s 18.9 million bpd but still around three-quarters of pre-war levels.
In the US, crude inventories fell by 865,000 barrels to 409.8 million barrels in the week ended October 30, according to the Energy Information Administration.
Gold price jumps as dollar hits a one-month low
Gold prices advanced more than 3% on Wednesday, with spot bullion rising 3.34% to $4,059.39 an ounce. US gold futures for December delivery also settled 3.36% higher at $4,072.30.
The rally put gold on track for its biggest daily gain since mid-August and pushed spot prices back above the $4,000 level.
The metal had fallen to $3,869.85 on October 30, its lowest level since October 2025.
A weaker US dollar provided support by making dollar-priced bullion cheaper for overseas buyers.
The dollar fell to a more than one-month low after Democrats secured control of Congress, prompting investors to reassess the economic and policy implications of the election results.
Attention also turned to upcoming US employment data.
Investors are awaiting Friday’s nonfarm payrolls report for clues about the Federal Reserve’s interest rate outlook.
Traders were pricing in an 83% chance of a rate increase in December, according to CME Group’s FedWatch tool.
Other precious metals also advanced.
SpaceX and Tesla stocks fall after Democratic election gains
Shares of SpaceX and Tesla fell in trading as Democratic victories raised concerns about tighter scrutiny of AI companies and uncertainty surrounding Musk’s business expansion plans.
SpaceX shares dropped more than 4.9%, while Tesla declined over 2.3%, even as Dow Jones rose nearly 3%.
The results were a setback for Musk, who contributed approximately $474 million to Republican candidates and political groups during the election cycle.
Several candidates he supported, including Ken Paxton in Texas and Vivek Ramaswamy in Ohio, lost their respective races.
Texas is particularly important to Musk’s businesses, hosting Tesla’s largest US vehicle factory and SpaceX’s Starbase launch facility.
The victory of Democrat Gina Hinojosa in the gubernatorial race could create challenges for new projects, given her opposition to corporate subsidies and support for tighter restrictions on data centres.
Investors are also assessing the potential impact of greater congressional scrutiny on Musk’s companies and a possible merger between SpaceX and Tesla.
Google extends voluntary buyouts to five more countries
Alphabet has expanded its voluntary employee buyout programme to Canada, France, Germany, Japan and Switzerland as it seeks to manage operating costs while increasing AI investment.
The company confirmed that it extended voluntary exit offers to employees in the five countries in June.
However, the number of workers who accepted the packages remains unclear.
The latest expansion follows earlier voluntary exit programmes introduced across some Google teams in 2025 and subsequently extended to selected employees in the US and UK.
The move comes as major technology companies reassess workforce costs while committing substantial capital to AI infrastructure.
Microsoft, Meta, Amazon and Oracle have also undertaken workforce reductions or voluntary exit initiatives.
Alphabet’s cost management efforts come amid growing investor scrutiny of its AI spending.
The company recorded $51.4 billion in capital expenditure in the third quarter, more than double the year-earlier figure.
Free cash flow turned negative at $9.1 billion, reflecting heavy infrastructure investment, inventory buildup for its TPU systems, and a European Commission-related payment.
AI disclosure: AI tools assisted with research and drafting of this piece. An ICD editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
This post Evening digest: oil falls 8%, gold rallies after Democrats’ election victory may be modified as updates unfold
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