Oil, energy stocks climb after Houthi strike on Riyadh

Oil prices climbed nearly \$2 a barrel on Monday, and the S&P 500 energy sector closed at a record. Investors gave more weight to deadly Houthi attacks on Saudi Arabia than to President Donald Trump's announcement of more Russian diesel exports and an energy ceasefire between Russia and Ukraine.marketwatch+1

Reuters reported that Brent crude futures settled up \$1.93, or 1.8%, at \$106.65 a barrel, their highest close since Sept. 15. U.S. West Texas Intermediate crude rose 2% to settle at \$93.74. The S&P 500 Energy Sector gained 1.5% to its first record close in nearly a month, according to MarketWatch News Corp ↗ 1.16%.live.euronext+1

Attacks Revive Supply Fears

Iran-backed Houthi militants in Yemen claimed a Saturday strike on Riyadh's King Khalid International Airport. Reuters put the death toll at 13 and said more than 300 people were wounded. CNBC and MarketWatch reported 12 dead. MarketWatch said it was the deadliest attack in Saudi Arabia in more than a decade, and that the kingdom's military has vowed to respond. The Saudi-led coalition said Monday it was dealing with a new round of drone and missile attacks.cnbc+2

Further attacks on tankers near the Strait of Hormuz added to the worry. "The sense of some kind of normality of exports from the Strait of Hormuz was shattered last week," said Bjarne Schieldrop, a commodities analyst at SEB.live.euronext

Goldman Sachs The Goldman Sachs Group, Inc. ↘ 0.15% raised its December Brent forecast to \$90 a barrel from \$85. The bank estimated that prices carry a risk premium of just over \$20 a barrel.live.euronext

Diesel Deal Fails to Cap Prices

Trump said on Friday that Russia would immediately supply more than 300,000 metric tons of diesel to global markets, with more to follow. On Sunday, he announced that Russia and Ukraine had agreed to stop attacking energy infrastructure. On Monday, Ukrainian President Volodymyr Zelenskyy accused Moscow of breaking that truce by hitting a gas-production facility.cnbc+1

ICE gasoil futures fell 2.3%, but analysts doubted the diesel deal would have much effect. A Jefferies ↗ 1.42% analyst estimated that the promised supply would cover just over nine days of U.S. demand.live.euronext+1

Big Oil Gains, Tech Weighs on Indexes

Exxon Mobil ↗ 1.90%, Chevron ↗ 1.42% and BP ↗ 1.04% each rose more than 1%, and ConocoPhillips ↗ 2.58% gained about 2%. Both Exxon and Chevron are scheduled to report third-quarter results on Oct. 30.investors

Major indexes ended mixed. The Dow Jones Industrial Average rose 0.38%. The S&P 500 slipped 0.06%, and the Nasdaq Composite fell 0.44% as chip stocks declined. Bond markets were closed for Columbus Day, and investors are waiting for September inflation data and bank earnings that begin Tuesday.investing+2

Jonathan Corpina of Meridian Equity Partners said: "We're going to continue to have volatility in the markets and in the headlines coming out of the Middle East because at this point we're all focused on which direction that's going to go".marketwatch