Saudi attacks lift oil prices as dollar reaches 18-month high

what happened

According to Newsmetry API, oil and fuel prices rose after weekend attacks on a Saudi airport. South Korean shares fell 4%, while European stocks gained 0.7% and UK equities rose 1%. In the United States, the Nasdaq declined 0.4%, the Dow advanced 0.4% and the S&P 500 was flat. Trading in US bonds was closed for Columbus Day.

The dollar index reached its highest level since April 2025 and has risen 4% over the past month. Dollar/yen climbed to a three-week high of 158.70, while the Indian rupee was the strongest performer after action by the RBI. Oil gained 2% following the strikes on Riyadh, and French and Italian spreads over Germany widened.

Energy stocks in the S&P 500 rose 1.5%, while technology shares fell 0.9%. Meta gained 3.4%, Microsoft added 1% to reach a 2026 high, and Chipotle dropped 3.7%. Investors also continued to assess growing concern about artificial intelligence, high earnings expectations and the possibility of a future stock-market pullback.

Economists said the US trade deficit widened from 2.7% of GDP in the first quarter to 3% in the second and could reach 4% next year. The next day’s agenda includes IMF and World Bank meetings in Bangkok, Japan and Germany wholesale inflation, China trade data and speeches by US Federal Reserve officials.

why it matters

Markets are weighing geopolitical and supply risks alongside dollar strength and concerns about the economic effects of heavy AI investment. Higher energy costs and a stronger US currency create different pressures across equities, bonds and emerging-market assets.

instruments