Oil futures rose as market concern about a Middle East escalation after the US midterm elections outweighed intensive regional diplomacy. CITIGROUP analyst Francesco Martoccia said the post-election Israeli political deadlock 'heightens uncertainty at a sensitive moment for US‑Israel‑Iran ties and raises the risk of renewed military escalation.' He warned escalation would likely push the geopolitical risk premium higher, while credible progress on negotiations could partially unwind it, and said

2026-10-28

Oil futures rose as market concern about a Middle East escalation after the US midterm elections outweighed intensive regional diplomacy. CITIGROUP analyst Francesco Martoccia said the post-election Israeli political deadlock 'heightens uncertainty at a sensitive moment for US‑Israel‑Iran ties and raises the risk of renewed military escalation.' He warned escalation would likely push the geopolitical risk premium higher, while credible progress on negotiations could partially unwind it, and said the election outcome does not alter CITIGROUP’s baseline of a negotiated deal by year‑end but raises the probability of a more volatile, potentially destructive path.