Houthi Attack Lifts Oil, Dollar; Brent Tops $105

International oil prices and the dollar are rising together as a Houthi attack on Saudi Arabia fuels concern that conflict in the Middle East could spread.

Bloomberg reported on October 11 that Brent crude, the international benchmark, traded at $105.10 a barrel in early Asian trading, up 0.4%. The dollar also edged higher against major currencies. S&P 500 futures advanced. Earlier, the S&P 500 closed up 0.6% in New York on October 9.

The rise in oil prices is being driven by a string of Houthi attacks on Saudi Arabia. Twelve people were killed in an attack on Riyadh International Airport on October 10, followed by another attack on October 11. Concern is growing that the Middle East conflict could widen, with possible US military involvement also being discussed. Saudi Arabia is also supporting retaliation against Houthi forces near the Bab el-Mandeb Strait, a key shipping route south of the Red Sea, raising the risk of disruptions to energy supplies.

Markets are now focused on the US consumer price index for September, due this week. Higher oil prices could add to inflation pressure and increase the likelihood of another interest-rate hike by the Federal Reserve. A speech by Fed Chair Kevin Warsh is also scheduled. The yield on the 10-year US Treasury approached 5.4% last week, the highest level since 2002. Brent's move above $100 a barrel has reinforced concern that inflation could remain elevated for longer.

Nick Twidale, chief market analyst at AT Global Markets, said geopolitical headlines can have a bigger-than-expected impact when markets are relatively calm. This week also brings US inflation data, comments from Fed officials and corporate earnings, leaving investors with plenty to digest. Bloomberg Intelligence projects third-quarter net income for S&P 500 companies will rise about 25% from a year earlier. Still, higher energy costs could weigh on corporate profitability.

The dollar posted a fourth straight weekly gain through last week, its longest winning streak since early 2025. Demand for haven assets increased amid war with Iran and persistently high oil prices. Strategists including Themistoklis Fiotakis at Barclays said the dollar has room to rise further given relatively solid US growth and Europe's fiscal and energy vulnerabilities. They added that crowded long-dollar positioning could limit gains in the short term.