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

NEW YORK: Oil prices rose Monday as Yemen's Iran-backed Houthi movement launched additional strikes on Saudi Arabia, adding to worries about tight global supplies heading into the northern hemisphere winter.

Several powerful explosions rattled the Saudi capital Riyadh on Monday night following a series of Houthi attacks at the Riyadh airport in recent days that have killed at least 18 people.

Oil prices rose about two per cent, while global equity markets turned in a mixed performance as investors looked ahead to major US corporate earnings and economic data later in the week.

"We're waiting for a lot of elements," CFRA Research's Sam Stovall said near the end of Monday's session that saw the Dow climb and the Nasdaq retreat.

"Investors are sort of holding their breath waiting for confirmation that the market was justified in setting a new all-time high on the S&P 500," said Stovall, adding this week's inflation data was a particularly important source of interest.

An unexpectedly lofty inflation reading could lift the odds for another Federal Reserve interest rate hike in October, Stovall said.

Saudi Arabia's energy minister acknowledged that the kingdom's infrastructure and resilience had been tested in the aftermath of the latest attacks.

"Energy security can't be taken for granted," Energy Minister Prince Abdulaziz bin Salman told a high-profile conference in Riyadh. "The events of recent weeks are serious, our response must be equally serious."

Doubts surrounding US President Donald Trump's claim of an "energy ceasefire" between Ukraine and Russia, following his surprise announcement of a deal to buy diesel from Moscow, further unsettled investors.

"Oil remains well bid above US$100 after strikes on Saudi Arabia's Riyadh airport over the weekend, while efforts to secure a Russia-Ukraine energy truce were muddy," said Neil Wilson, a strategist at Saxo UK.

Russia on Monday refused to say whether an agreement had been reached with Ukraine to halt attacks on energy infrastructure, a day after Trump sowed confusion with his unilateral announcement of an "energy ceasefire."

"It is increasingly evident that Russia is unwilling to accept an energy ceasefire proposed by the United States," Ukrainian President Volodymyr Zelenskyy said on social media.

"Today alone, the Russians have attacked six energy facilities in Ukraine. Thirty-three people were wounded across the country," he added.

Also in view this week is the start of the corporate earnings season, with US banking giants JP Morgan, Goldman Sachs and Bank of America due to report on Tuesday.

Tech giants will follow later in October and November, with traders keen to get an idea on the outlook for the AI sector as it invests vast sums despite growing concerns over the technology.

Markets are bullish on company results overall, with companies in the S&P 500 expected to report a 24.3 per cent jump in earnings per share compared with the third quarter of 2025, according to CFRA.

- KEY FIGURES AT AROUND 2020 GMT -

BRENT NORTH SEA CRUDE: UP 1.8 per cent at US$106.65 per barrel

WEST TEXAS INTERMEDIATE: UP 2.1 per cent at US$93.74 per barrel

NEW YORK - DOW: UP 0.4 per cent at 51,850.55 (close)

NEW YORK - S&P 500: DOWN 0.1 per cent at 7,807.24 (close)

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LONDON - FTSE 100: UP 1.0 per cent at 10,656.28 (close)

PARIS - CAC 40: UP 0.4 per cent at 7,832.88 (close)

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