Oil Surges Past $106 on Houthi Attacks, Tanker Strikes

Oil prices jumped Monday with Brent crude rising around 2% to $106 a barrel, the highest level in nearly two weeks, while WTI climbed to $93.69. The rally came despite President Donald Trump's announcement of an energy ceasefire between Russia and Ukraine.

Houthi rebels aligned with Iran claimed responsibility for Saturday's attack on Riyadh's King Khalid International Airport. Saudi Arabia's General Authority of Civil Aviation reported 12 dead and 309 injured, while Houthi claims cited 13 dead and over 300 wounded. Fresh strikes hit the airport again on Sunday.

“In quieter periods, geopolitical headlines tend to have a disproportionate impact on markets.”

Maritime risks escalated as two tankers were struck by projectiles transiting the Strait of Hormuz on Saturday and Sunday, and a third was hit by a drone near Oman's Sohar anchorage on Monday, according to UK Maritime Trade Operations. All crews were reported safe.

The US dollar index hovered near an 18-month high at 102.44, supported by safe-haven demand and elevated bond yields. Speculators increased gross long dollar positions 40% to $35.4 billion in the week to October 6, the highest since July.

Markets now turn to Wednesday's US September CPI report, the last major inflation print before the Federal Reserve's November policy meeting. The data will test whether geopolitical risk premiums can sustain higher oil prices amid mixed supply signals.