Trump says 'largely true' Iran war led to Republicans midterm loss

President Donald Trump acknowledged that the Iran war largely contributed to his Republican Party's midterm losses, though he defended the military action as necessary in the long term. Speaking at the construction site of the White House ballroom, Trump responded to Vice President JD Vance's post blaming the conflict for Republican defeats.

"I think it's largely true because it drove the gasoline up a little bit short term," Trump said. "But at the same time, if I had to do it again, I'd have to do it again. Because long term, it's the only answer. You can't let Iran have a nuclear weapon."

Vance blames war directly

Vice President JD Vance was more direct in his assessment, posting on X that "the reason we lost is the war." He acknowledged that many voters who backed Trump in the 2024 presidential election switched to Democrats out of anger over the conflict. "If you'd like to argue it was worth it, that losing the Senate for the next 6 years was worth it, then do so," Vance wrote. "But everyone knows why we lost."

German chancellor predicts Trump's next moves

German Chancellor Friedrich Merz suggested Trump will continue to bypass Congress in his final two years by issuing executive orders. "Trump has, for the past two years, largely governed without consulting Congress. Why should things be any different now?" Merz said during an economic forum. He noted that budget planning and military factors would be areas where changes might occur.

Market reaction and leadership changes

Stock markets worldwide reacted positively to the Democratic victory, with major European indices gaining 1.94-3%. However, shares of SpaceX and Tesla, both owned by Republican megadonor Elon Musk, fell about 5% as markets opened. Musk had spent nearly $500 million to support Republican candidates.

House Speaker Mike Johnson, a close Trump ally, is unlikely to seek the position of House minority leader when Democrats take over in January. Republican congressman Jim Jordan from Ohio is expected to announce his candidacy for the position instead.

Foreign policy implications

EU foreign policy chief Kaja Kallas expressed hope that the new Democratic-majority Congress would continue support for Ukraine and pressure Russia. The Democratic-controlled Congress is expected to put a check on Trump's foreign policy toward Ukraine and Russia, though Trump remains commander-in-chief of the military.

The White House posted a reminder on social media: "PSA: Trump is still your president," emphasizing that Trump remains in charge of US foreign policy despite losing Congress. The post included Trump's typical signoff: "Thank you for your attention to this matter."