Crude oil prices declined sharply on Wednesday, with Brent prices falling below the $100 mark on hopes of a peace deal in the Iran war following the Democrats' victory in the US midterm elections.

Brent crude prices were trading over 8% lower at $94.91 a barrel while WTI oil was at $88.42 a barrel.

For live updates on US Markets, click here

Democratic victories have prompted investors to reassess the US administration's approach to the Iran conflict. Markets are speculating that President Donald Trump may shift towards diplomacy rather than further military escalation.

Qatar has stepped up mediation efforts between Washington and Tehran. Reports of discussions around a possible peace agreement have raised hopes of stabilising Middle Eastern oil supplies.

However, negotiations remain uncertain, with Iranian officials indicating that the two sides are still far from an agreement.

Also Read: Democratic victory in midterm elections adds a new twist to stock markets' Iran war, AI, and debt worries

Trump's statement that the US has no immediate plans to strike Iran has eased fears of another escalation. This has encouraged traders to unwind some of the geopolitical premium built into crude prices.

Gulf exports of crude, condensate and refined products recovered to 17.1 million barrels per day in October. Although still below pre-war levels, the recovery has eased concerns about immediate supply shortages.