By William Collins, consultant in stock markets – Eurasia Business News, October 12, 2026. Article no 3206
U.S. stocks closed mixed on Monday, October 12, as renewed attacks on Ukrainian energy infrastructure and escalating Middle East risks pushed oil prices higher. The Dow Jones Industrial Average gained about 0.3% to 0.4%, while the S&P 500 slipped 0.1% and the Nasdaq Composite fell 0.4%, with technology stocks underperforming.
Energy shares were the clear winners. The S&P 500 Energy sector climbed 1.5%, reaching its first record high in nearly a month as Brent crude settled above $106 a barrel. Investors also prepared for a pivotal week featuring major bank earnings, U.S. inflation data and remarks from Federal Reserve Chairman Kevin Warsh.
Russia-Ukraine Energy Ceasefire in Doubt
Oil markets were initially pulled lower after President Donald Trump said Russia and Ukraine had agreed to an immediate “energy ceasefire,” meaning an end to attacks on each other’s energy facilities. Yet the announcement quickly faced doubt after Ukraine said Russia continued to strike its energy assets. President Volodymyr Zelenskyy said Russian forces had violated the proclaimed ceasefire.
Russia also did not provide clear confirmation that a formal agreement had been reached. That uncertainty prevented traders from treating the declaration as a durable reduction in supply risk. An actual halt in attacks could help Russia restore refined-fuel exports and ease concerns about damaged Ukrainian power infrastructure. But on Monday, the claimed truce had not materially reduced geopolitical uncertainty.
Trump’s earlier arrangement for Russia to release diesel supplies into global markets was likewise expected to have a limited near-term impact. The announced shipment schedule may help ease refined-fuel tightness, but it does not directly resolve crude-oil supply risks or guarantee uninterrupted shipping through key waterways.
Brent and WTI Crude Prices
Brent crude futures gained 1.84% to settle at $106.65 per barrel, while U.S. West Texas Intermediate crude rose 2.06% to settle at $93.74 per barrel. The gains reflected a growing geopolitical risk premium after a series of Houthi attacks against Saudi Arabia.
| Oil benchmark | October 12 close | Daily move |
|---|---|---|
| Brent crude | $106.65 per barrel | +1.84% |
| West Texas Intermediate | $93.74 per barrel | +2.06% |
Houthi militants claimed responsibility for strikes on Riyadh’s main airport over the weekend. The attacks reportedly killed 13 people and injured more than 300, while Saudi authorities said people were also injured in a subsequent attack. Although the strikes did not directly target oil-export facilities, they increased concerns that the conflict could spread toward critical energy infrastructure or shipping routes.
Traders also monitored reports of attacks on tankers in the region. The risk to shipping near the Strait of Hormuz and Bab el-Mandeb has increased the cost of transporting crude and refined fuels, supporting oil prices even when supply data point in a less bullish direction.
Energy Stocks Reach a Record
The higher oil-price environment lifted oil and gas producers, refiners and energy-service companies. The S&P 500 Energy sector’s 1.5% advance made it the day’s strongest major sector and pushed it to a record close.
Energy stocks can benefit when oil prices rise because higher crude prices may increase revenue and cash flow for producers. However, the gains also reflect risk: a sharp, geopolitically driven increase in energy costs can revive inflation, reduce consumer spending and complicate central-bank policy.
Technology companies moved in the opposite direction. Their weaker performance helped push the Nasdaq lower, illustrating how investors rotated out of rate-sensitive growth shares and into companies linked more directly to commodity prices.
Earnings and Inflation Take Focus
The market’s next test comes from earnings. Major U.S. banks are scheduled to report results beginning Tuesday, offering investors fresh evidence on consumer demand, credit quality, lending activity and corporate confidence.
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On Wednesday, consumer-inflation data will be closely watched after crude prices moved higher. An upside surprise could intensify expectations that the Federal Reserve will keep interest rates restrictive for longer. Chairman Kevin Warsh’s scheduled Thursday appearance at a summit in Bangkok will also be monitored for signals on the Fed’s inflation outlook and policy path.
For investors, the combination of high oil prices and uncertain geopolitics has raised the stakes for economic data. If inflation accelerates, bond yields and the dollar could climb, creating more pressure for growth stocks.
Gold Price at $ 4,172
Gold prices declined in U.S. dollar terms on October 12 as a stronger dollar and rising oil prices weighed on bullion ahead of the week’s inflation data. Kitco quoted spot gold at $4,163.90 per troy ounce at 11:02 a.m. Eastern time, down $29.70, or 0.71%, for the day.
A later Kitco reading placed gold at $4,166.20 per ounce at 3:04 p.m. Eastern time, down $27.40 on the session. The difference reflects intraday market movement; neither figure should be treated as a universal closing price.
Read also : Gold : Build Your Wealth and Freedom
Gold faced competing forces. Geopolitical tension generally supports safe-haven demand, but a firmer dollar makes dollar-priced metal more expensive for buyers using other currencies. Elevated energy prices also raised concern that inflation could persist, potentially keeping interest rates high and increasing the opportunity cost of holding non-yielding gold.
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© Copyright 2026 – Eurasia Business News. Article no. 3205
