Most stock markets rose on Monday, October 12, 2026, as oil prices tumbled following US President Donald Trump's announcement of an "energy ceasefire" between Russia and Ukraine. Trump's post, which came early on Sunday, claimed that both parties had agreed to the ceasefire, effective immediately. The announcement offset a fresh wave of Houthi attacks on Saudi Arabia over the weekend.
The drop in oil prices reversed an initial spike that came in response to Houthi attacks on Saudi Arabia. At least a dozen people were killed at Riyadh's international airport on Saturday, marking the deadliest attack on Saudi soil for more than a decade. Another person died following a second strike on Sunday. The assaults marked a sharp escalation in the Yemen war, where Riyadh has long militarily supported the internationally recognised government against the Houthis.
Ukraine's President Volodymyr Zelensky expressed surprise at Trump's announcement, saying he was seeking further details. However, he added that "Ukraine supports the ceasefire, and it is important that Russia support it as well". Russia has yet to confirm its agreement to the ceasefire. Trump's announcement was welcomed by Ukraine's allies, but he had come under fire after declaring a temporary easing of US sanctions on Russian diesel.
The Iran-backed Houthi group claimed multiple attacks over the past 24 hours and threatened to keep targeting the kingdom's transit hubs, calling them "a theatre of operations for our forces". The attacks on Saudi Arabia led to an initial spike in oil prices, but this was reversed following Trump's ceasefire announcement. Both main crude contracts sank more than one percent following the announcement.
The drop in oil prices provided support to most Asian markets, with Hong Kong, Sydney, Singapore, Wellington, and Manila all up. However, Seoul and Taipei were dragged down by losses in chipmakers SK hynix, Samsung, and TSMC. Tokyo was closed for a holiday. US futures were sharply higher, indicating a positive start to the day for the US market.
Investors are also gearing up for the release of key US inflation and retail sales data, which could play a big role in the Federal Reserve's decision-making regarding interest rates. The bank is due to meet at the end of October. Additionally, the beginning of earnings season this week will see banking giants JP Morgan, Goldman Sachs, and Bank of America report their results.
At around 0220 GMT, key figures included Hong Kong's Hang Seng Index up 0.5 percent at 24,337.63, and West Texas Intermediate down 1.5 percent at $90.50 per barrel. Brent North Sea Crude was down 1.2 percent at $103.48 per barrel. The market is no longer paying full geopolitical premium on every headline, according to SPI Asset Management's Stephen Innes.
Key points
- Most stock markets rose on Monday as oil prices tumbled following Trump's announcement of an "energy ceasefire" between Russia and Ukraine.
- The drop in oil prices reversed an initial spike that came in response to Houthi attacks on Saudi Arabia over the weekend.
- Investors are gearing up for the release of key US inflation and retail sales data, which could impact the Federal Reserve's decision-making on interest rates.
