Oil climbs above US$106 as Saudi Arabia vows response to Houthi attacks

Oil prices surged above US$106 on Monday following additional strikes by Iran-backed Houthi rebels in Yemen on Saudi Arabia, raising concerns about potential disruptions to global oil supplies in the lead-up to winter. Several powerful explosions were reported in Riyadh, the Saudi capital, recently, resulting in at least 18 deaths.

The attacks on the Riyadh airport have driven oil prices up by around two percent. Global equity markets experienced a mixed performance, with the Dow climbing, the Nasdaq falling, and investors eagerly awaiting major US corporate earnings and economic data throughout the week. CFRA Research's Sam Stovall noted that investors are cautiously waiting for confirmation that the S&P 500's new all-time high was justified.

Energy Minister Prince Abdulaziz bin Salman emphasized that the kingdom's infrastructure and resilience have been tested due to the attacks, stating that energy security cannot be taken for granted. The recent events have added to doubts surrounding US President Donald Trump's assertion of an "energy ceasefire" between Ukraine and Russia, following his surprise deal to buy diesel from Moscow.

Russian President Volodymyr Zelenskyy accused Russia of being unwilling to accept a proposed energy ceasefire from the United States, citing that Russia had attacked six energy facilities in Ukraine on a single day, resulting in 33 injuries. As the week progressed, the corporate earnings season began, with major US banking giants like JP Morgan, Goldman Sachs, and Bank of America expected to report on Tuesday.

Tech giants were anticipated to share their results later in October and November, with traders closely watching the AI sector's progress amid growing concerns. Markets remained bullish on company results, with the S&P 500 projected to see a 24.3 percent jump in earnings per share compared to the third quarter of 2025.