What Trump losing power over Congress means for Iran, Ukraine and foreign policy

The shift in power dynamics between the US Congress and the White House, with Democrats taking control of the former, is set to have significant implications for US foreign policy. Specifically, the Democratic-controlled Congress is likely to increase oversight of the Trump administration's handling of key geopolitical issues, including the Iran nuclear deal and the Ukraine conflict. This heightened scrutiny may lead to more transparency and accountability in the administration's decision-making processes.

The Iran nuclear deal, in particular, is an area where Congressional scrutiny may intensify. The Trump administration's withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in 2018 was a contentious move, and Democrats have been critical of the administration's approach to Iran. With Congressional control, Democrats may push for more information on the administration's strategy and any potential plans to re-engage with the Iranian government. Similarly, the Ukraine conflict is likely to receive closer attention, with Democrats potentially probing the administration's support for Ukraine and its dealings with Russia.

For investors, what to watch next is how the Trump administration responds to increased Congressional oversight and whether this leads to any significant changes in US foreign policy. The extent to which the administration is willing to compromise with Democrats and provide greater transparency on its decision-making processes will be crucial. Additionally, investors should monitor the potential impact of Congressional scrutiny on US relations with key countries, including Iran and Ukraine, and how this may affect global markets and geopolitical risk assessments.

Originally reported by cnbc.com. FundNews adds analysis for finance & markets readers.