Oil falls on hopes of Iran talks as Democrats win Congress in the US midterms

Traders sent crude oil to its biggest one-day fall since July on Monday, after Iran's state news agency said the supreme leader had given the government authority to settle the conflict 'through dialogue'. President Trump also said twice that he would not strike Iran after the midterm elections.

Hours later American forces made what officials called limited, defensive strikes on Qeshm Island in southern Iran, after Iran's Revolutionary Guards fired on an American aircraft. On Tuesday, Democrats won control of both houses of Congress, which is expected to bring closer scrutiny of the war.

Iran's chief negotiator said Americans had said no to war, and Qatar and Pakistan are carrying messages between the two sides towards an interim deal. Traders pushed crude lower again on Tuesday, to its lowest in nearly four weeks.

The Strait of Hormuz, the sea lane that carries about a fifth of the world's oil, is still dangerous: Iran's Revolutionary Guards say four more tankers hit mines there on Wednesday, which has not been confirmed.

UK suppliers have cut heating oil more gently, because it follows the wholesale price of diesel and jet fuel rather than crude itself.