Houthi attacks push oil over US$100 as investors brace for US inflation data

Oil prices surged to over US$100 per barrel on Monday as Yemen's Iran-backed Houthi rebels launched additional attacks on Saudi Arabia, exacerbating concerns about potential global supply shortages before the northern hemisphere winter. Several powerful explosions shook the Saudi capital Riyadh on Monday night following a series of Houthi strikes at Riyadh airport in recent days, resulting in at least 18 deaths.

Oil prices climbed roughly 2 percent, while global equity markets exhibited a mixed performance as investors anticipated major US corporate earnings and economic data later in the week.

CFRA Research's Sam Stovall expressed uncertainty about the market's recent performance, stating that investors were eagerly awaiting confirmation whether the market's recent increase in stock prices was justified. Stovall emphasized that this week's inflation data would be a crucial factor, as an unexpectedly high inflation reading could potentially prompt another Federal Reserve interest rate hike in October.

Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, acknowledged that the kingdom's infrastructure and resilience had been tested due to the latest Houthi attacks. He emphasized that energy security should not be taken for granted and that the recent events called for equally serious responses.

Confusion surrounding US President Donald Trump's claim of an "energy ceasefire" between Ukraine and Russia, following his surprise announcement of a deal to purchase diesel from Moscow, further unsettled investors. Russia declined to confirm whether an agreement had been reached with Ukraine to cease attacks on energy infrastructure, contradicting US President Donald Trump's unilateral declaration of an "energy ceasefire."

Ukrainian President Volodymyr Zelensky criticized Russia on social media, asserting that Russia was not willing to accept the U.S. proposed energy truce. He reported that Russian forces had attacked six energy facilities in Ukraine on a single day, resulting in 33 casualties across the country.

Another critical aspect of this week's market focus is the beginning of the corporate earnings season, with US banking titans JP Morgan, Goldman Sachs, and Bank of America set to release their financial results on Tuesday. Tech giants will report their earnings later in October and November, as traders closely monitor the AI sector's prospects amid growing concerns over the technology.

Overall, markets remain optimistic about company performance, with S&P 500 companies expected to report a 24.3 percent increase in earnings per share compared to the third quarter of 2025, as reported by CFRA.