Day News Recap: Democrats seize Congress as Iran tensions, Ukraine diplomacy and markets swing

Democrats have taken control of both chambers of the United States Congress after a sweeping midterm result, a major setback for Donald Trump and Republicans that party leaders said would let them rein in the president. Trump said he may work with Democrats, while Republicans began a reckoning over the losses and JD Vance blamed the outcome on Iran war politics and ties to Israel.  🔗  🔗  🔗  🔗

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The result also reshaped the race for the White House and Congress in several states, with Democrats claiming a broader mandate and one of their gains coming in California's 22nd district, where Randy Villegas defeated Republican incumbent David Valadao. Five Republican election deniers also lost governor races in key swing states, adding to the scale of the setback.  🔗  🔗

In the Middle East, Iran warned that any response to renewed US attacks would have no geographical restrictions, after Trump said strikes could resume after the midterm elections. Washington also imposed sanctions on companies and individuals in India and Turkiye that it says helped Iran evade restrictions on oil exports and airline networks, while Reza Pahlavi used a Brussels visit to urge the EU to increase pressure on Tehran.  🔗  🔗  🔗

Regional tensions widened elsewhere, with Saudi Arabia saying its air defences intercepted a ballistic missile aimed at the Medina region near Yanbu, and Syria and Saudi Arabia signing a defence cooperation deal alongside more than $403m in Saudi loans for Syrian sectors. South Korea also said it wants to expand its Cheonghae anti piracy mission closer to the Hormuz Strait as piracy rises.  🔗  🔗  🔗

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Ukraine remained at the centre of diplomacy and fighting. Volodymyr Zelensky said he held 90 minute talks with US envoys Steve Witkoff and Jared Kushner as Abu Dhabi diplomacy advanced, and separately said the Democratic gains in Washington could improve prospects for more US aid. The European Commission also disbursed EUR 4.36 billion to Ukraine under its support loan.  🔗  🔗  🔗

On the battlefield and in the wider security picture, seven people were killed in two separate bus attacks in Russian controlled parts of Luhansk, while a drone strike set an Ozon warehouse ablaze in southern Russia. Poland said it arrested six people suspected of spying for Moscow and supplying military components, and Russia placed Japan Tobacco International's Russian operations under state control.  🔗  🔗  🔗  🔗

Israel's political scene was also in flux after the US midterm shift, with opposition figures blaming Benjamin Netanyahu for weakening support for Israel in America. The Joint List said it would recommend Gadi Eisenkot to President Isaac Herzog as the candidate to form the next government, and Herzog opened coalition consultations after certifying the election results.  🔗  🔗  🔗

Elsewhere, Ethiopia ordered six Sudanese diplomats to leave and closed Sudan's consulate in Assosa amid border tensions, while a Jordanian security officer was killed and another wounded in a stabbing attack near the Sri Lankan Embassy in Amman. Serbia detained nine active police officers and one former officer over alleged abuse of protesters in Belgrade, and Hong Kong activist Joshua Wong was sentenced to 10 more years in prison in a national security case.  🔗  🔗  🔗  🔗

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In Asia and Europe, North Korea told the EU to mind its own business over a draft UN human rights resolution, China warned it would retaliate if Brussels adopts a new trade defence tool, and China also rejected UK cyber claims after an NCSC report. In France, tens of thousands marched in Lyon during a nationwide strike day that turned tense with clashes and tear gas, while in Germany police opened an investigation after Hubert Aiwanger was found dead in a Berlin hotel.  🔗  🔗  🔗  🔗  🔗

In the UK, the Bank of England was expected to raise rates for the first time in more than three years, as markets braced for a shift in policy. In Ireland, cyberattacks on supermarket fridges and freezers affected 13 SuperValu stores and disrupted chilled and frozen food supplies across Europe.  🔗  🔗

Yemen's war also showed no sign of easing, with the conflict settling into a war of attrition a month after the government launched a new offensive against Houthi fighters.  🔗

Financial glimpse

Wall Street finished mixed, with the Nasdaq Composite down 3.1% and the S&P 500 off 0.7%, while the Dow Jones rose 1.7% as banks, metals and crypto outperformed and tech and energy lagged.  🔗

Asia Pacific trading was sharply split, with the Nikkei 225 down 5.5% and the Kospi off 9.3%, while Hong Kong and Australia advanced and gold and oil swung hard.  🔗

Europe opened and closed higher, led by France and a strong move in precious metals, as Brent crude slumped and gold pushed above $4,120 an ounce.  🔗  🔗

Sources in this recap

360LiveNews Recap 360LiveNews Recap | 05 Nov 2026 18:32 LONDON
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