Did the U.S. Election Really Reduce Iran War Risk?
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After the Republican defeat in the U.S. midterms, oil dropped sharply and markets started pricing a lower risk of another Iran escalation.
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But for me, the geopolitical risk is far from over.
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The new Democratic-controlled Congress does not begin until January 3, 2027. Even after that, presidential authority over foreign policy and military decisions remains significant, although Congress can increase political, budgetary, and oversight pressure.
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Trump has continued defending the Iran war, while additional military options reportedly remain under consideration.
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The U.S. military presence in the region also remains heavy, with multiple carrier strike groups in or near the Middle East.
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Israel adds another layer of uncertainty. Netanyahu remains caretaker prime minister while coalition negotiations continue, and any political transition could still take weeks.
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This is why I’m still paying special attention to Thursdays and Fridays.
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Recently, when weekend geopolitical risk rises, oil tends to strengthen while U.S. equities, crypto, and sometimes precious metals come under pressure.
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That does not mean every weekend must become bearish — but I still respect the risk.
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Lower oil and stronger risk assets are positive signals, but they do not mean the geopolitical premium is permanently gone.
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If tensions return, oil could react quickly, and I would immediately watch
$BTC ,
$ETH ,
$XAUT , and the S&P 500 for renewed pressure.
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For now, I’m managing positions more carefully into each weekend.
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The election changed the political environment.
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It did not eliminate geopolitical risk.
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Do you think the market is becoming too comfortable with the idea that escalation risk is over?
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#Geopolitics