Business · Markets · 6 hrs ago
Oil rises as Saudi attacks fuel inflation concerns and lift the dollar
Oil prices rose on Monday after attacks on Saudi Arabia overshadowed hopes for better supply.
Higher energy costs have raised concerns that inflation may stay high.
Investors expect the US Federal Reserve could raise interest rates to contain inflation, and those expectations have helped strengthen the dollar.
The dollar also gained support from demand for safer assets as conflict in the Middle East escalated.
Global stocks were mixed, with US indexes moving in different directions and European shares rising.
Investors were waiting for US inflation figures and the start of the third-quarter earnings season, which begins with major banks.
Markets priced in a greater chance of a US rate increase in December than this month.
Oil prices climbed on Monday as attacks on Saudi Arabia overshadowed hopes for improved supply.
Rising energy costs fueled concerns that inflation could stay elevated and prompt higher interest rates.
The dollar rose as investors sought safe-haven assets amid the escalating Middle East conflict.
US crude rose 1.9% to $93.55 a barrel, while Brent rose 1.7% to $106.52.
Global stocks were narrowly mixed as investors awaited US inflation data and the start of the third-quarter earnings season.
- Who
- Oil and currency markets, with investors responding to the attacks and inflation concerns.
- What
- Oil prices rose, while the US dollar strengthened.
- When
- Monday, October 12, 2026.
- Where
- Global markets; the attacks were in Saudi Arabia.
- Why
- Attacks on Saudi Arabia overshadowed hopes for improved supply, while higher energy costs raised inflation concerns and expectations of higher US interest rates.
This story does not have two clearly opposing sides.
Expectations that high energy and other goods prices could lead to higher US interest rates helped drive the dollar higher.
Oil prices climbed as attacks on Saudi Arabia overshadowed hopes for supply improvements, and the dollar rose amid inflation and rate concerns.
- US crude
- Rose 1.9% to $93.55 a barrel
- Brent crude
- Rose 1.7% to $106.52 a barrel
- Dollar index
- Rose 0.4% to 102.59
- US inflation data
- September data was awaited by investors
- Federal Reserve rate expectations
- Markets implied a 19% chance of a rate increase that month and roughly 71% for a 25-basis-point hike in December
What people are saying
There's a lot to be wary of
Sources
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