Solana rebounded strongly yesterday after the Democrats won both the House and the Senate in the US midterm elections.
It looks like the market believes the Republicans’ loss will force Trump to seek an exit from the Iran war, eventually supporting economic growth and risk appetite as energy prices sink
That’s also what we saw in the oil market yesterday, as prices dropped quickly after US Vice President Vance blamed the war with Iran for the loss in the midterm elections. His post on X reinforced market expectations that the Trump administration could seek an off-ramp from the conflict rather than escalate the war. Keep in mind, though, that Trump can legally continue military operations against Iran even if Democrats control both the House and the Senate.
So, it’s not that simple to force Trump out of the war, and the final decision still rests with Trump. But for now, this seems to be the scenario the market is betting on. Looking ahead, the focus will remain on US-Iran negotiations.