Republicans prepare for a House leadership contest as Democrats outline priorities and investors reassess the policy outlook.
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, Nov 5 -Vice President JD Vance has attributed Republican losses in the US midterm elections to the Iran war, while President Donald Trump acknowledged its political cost but defended the military campaign as necessary.
Their comments on Wednesday, 4 November, came as House Speaker Mike Johnson decided against seeking the Republican leadership in the next Congress, adding a leadership contest to the party’s preparations for opposition in both chambers.
Democrats have secured enough victories to take control of the House of Representatives and Senate from January. With some races still unresolved, attention has shifted from which party will govern Congress to how it will exercise its authority over legislation, spending and oversight.
War and household costs
“The reason we lost is the war,” Vance wrote on X, according to NBC News. He cited a conversation with an unnamed pollster who identified the conflict, living costs and the US relationship with Israel among concerns influencing former Trump voters.
Vance’s assessment places the conflict at the centre of the Republican debate over the result. Healthcare, immigration and the broader economy also featured in the campaign.
Asked about Vance’s assessment, Trump said it was “largely true”, pointing to higher petrol prices. He nevertheless maintained that military action was needed to prevent Iran from acquiring a nuclear weapon, according to Anadolu Agency’s account of his remarks.
Trump acknowledged the war’s political cost while continuing to defend the decision to launch it. Neither statement announced a change in US military policy.
Republicans prepare to choose a leader
Johnson will not seek election as House minority leader in the next Congress, Reuters reported, citing a person familiar with the decision. He remains speaker during the current Congress.
House Majority Leader Steve Scalise and Judiciary Committee Chairman Jim Jordan plan to contest the post, with party elections expected on 10 November. Trump said he would not intervene in the contest.
The transition will shape how House Republicans respond to Democratic proposals while supporting a Republican president. The new Congress convenes on 3 January 2027.
Democrats outline their priorities
House Democratic Leader Hakeem Jeffries and Senate Democratic Leader Chuck Schumer have put household costs at the centre of their proposed agenda, Spectrum News reported.
Jeffries listed reversing Medicaid reductions, extending Affordable Care Act tax credits, ending the Iran war and stopping Trump’s tariffs among his priorities. He also expressed willingness to pursue bipartisan agreements on affordability.
Those proposals remain subject to the legislative process. Trump retains the presidential veto, while Senate rules could require Republican support for many bills. Democratic control also brings committee leadership and the ability to direct investigations, but it does not automatically translate into changes in trade or military policy.
The Senate races in Alaska and Mississippi remained uncalled in Wednesday’s reporting by the Associated Press. Their outcomes will determine the size of the majority, with Democratic control already established by race calls.
Stocks rise as oil falls
US markets advanced on Wednesday as investors assessed the election outcome. The Dow Jones Industrial Average rose 1,569.40 points, or 3.03 per cent, to 53,356.12. The S&P 500 gained 1.58 per cent to 7,688.62, while the Nasdaq Composite added 1.44 per cent to 25,736.51, according to Xinhua.
Oil prices also fell sharply. Brent futures settled 8.7 per cent lower at US$94.62 a barrel on Wednesday, while US West Texas Intermediate fell 8.3 per cent to US$88.12, Reuters reported.
Reuters linked the oil decline to investor expectations that the election result could increase pressure for an end to the Iran war. Those expectations remain subject to diplomatic and military developments.
Implications for Malaysia
For Malaysia, the potential effects run through energy prices, trade and financial markets. Sustained lower crude prices could reduce some fuel subsidy pressures, while also lowering receipts linked to oil and gas. The net fiscal effect would depend on exchange rates, subsidy arrangements and realised energy prices.
Currency and capital flows will also depend on US interest rate expectations and domestic conditions. Bernama reported that the ringgit closed at 4.0610/0660 to the dollar on Wednesday, compared with 4.0735/0775 a day earlier.
In Malaysia’s earlier Wednesday session, the FBM KLCI fell 5.29 points, or 0.32 per cent, to 1,616.56, Bernama reported. The local market had closed before the subsequent Wall Street rally.
For exporters, any tariff relief will depend on specific decisions by Congress and the administration. The election has determined who will control Congress from January; businesses must now watch how the two branches negotiate trade policy.
- TNS NEWS