Oil Prices Rise as Middle East Attacks Worry Markets

Oil prices went up and the US dollar got a little stronger on Oct. 11 after a group called the Houthis attacked Saudi Arabia's main airport. Investors — people who put money into markets hoping to make more money — were worried the fighting could spread and disrupt oil supplies around the world. The attacks came just one day after a similar strike killed 12 people, making the situation feel more serious and uncertain.

Brent crude, which is the main global price for oil, rose 0.4% to about $105 per barrel. Oil prices had already been above $100 a barrel, which worried many people because expensive oil can make everyday goods cost more. When energy costs stay high for a long time, it can lead to inflation — which means prices for things like food, gas, and clothing keep going up.

Saudi Arabia is fighting back near a place called Bab el-Mandeb, a narrow waterway between Asia and Europe where many ships pass through. If that area becomes dangerous, ships may have to take longer routes, which raises the cost of shipping goods. That could make prices even higher for people all over the world.

This is already a big week for financial markets. Investors are waiting for data that shows how much prices have gone up in the US and Europe. Many important officials from central banks — the groups that control how much money is in the economy — are also expected to speak this week.

The US Federal Reserve has been raising interest rates to try to slow down inflation. Interest rates are like the price of borrowing money — when rates go up, it costs more to take out a loan. Traders are watching for clues about whether the Fed will raise rates even more, especially after the 10-year Treasury yield got close to 5.4% last week, its highest level since 2002.

Stock markets have held up fairly well despite all the tension. The S&P 500, which tracks the prices of 500 big US companies, hit a record high on Oct. 6, dipped a little, and then bounced back on Oct. 9. It is still close to its all-time high, and investors are hoping for another strong earnings season.

Companies in the US have been making strong profits for nearly two years, with earnings growing by double digits for seven quarters in a row. Analysts expect profits to rise about 25% compared to a year ago. Still, investors want to see if higher costs are starting to eat into those strong profits.

The US dollar has also been getting stronger, rising for four weeks in a row — its longest winning streak since early 2025. Investors move money into the dollar when the world feels risky because the US economy is seen as stable and strong. Problems in Europe, like budget troubles in France and high energy prices, have also helped push the dollar higher.