Oil prices stabilized on Wednesday, October 28, 2026, after two days of declines, as traders monitored the outcome of Israel's election, which could influence the trajectory of the US war with Iran. Brent crude held above $114 a barrel, trading at $114.36 in early Asian trade, while the US West Texas Intermediate (WTI) rose 0.3% to $100.24 a barrel. The uncertainty stems from exit polls showing opposition leader Gadi Eisenkot’s bloc tied with Prime Minister Benjamin Netanyahu’s, with neither side securing a clear majority.
The election outcome remains uncertain as officials continue counting votes. The delay in forming a new coalition could allow Netanyahu to remain in office temporarily, potentially influencing US President Donald Trump’s decision to escalate military action against Iran following next week’s midterm elections. Eisenkot has positioned himself as a more cautious alternative to Netanyahu, advocating for military force to curb Iran’s nuclear program but rejecting the goal of toppling the Iranian regime.
Diplomatic efforts in the region saw officials from Saudi Arabia, Pakistan, and Turkey visiting Tehran for talks, though Iran’s Supreme Leader Mojtaba Khamenei reiterated the country’s existing conditions for ending the war. The conflict, which began in February 2026, has already driven Brent prices up by over 85% this year, disrupting energy flows in the Gulf. Supply risks persist, with Yemen’s Houthi rebels attacking Saudi energy infrastructure, including a recent strike near Ras Tanura, the kingdom’s largest oil export terminal.