Global financial markets gained ground early Monday, October 12, 2026, as falling oil prices supported equities across Europe, Asia and the United States. Investors responded to US President Donald Trump's announcement of an energy ceasefire between Russia and Ukraine, while continued Houthi attacks on Saudi Arabia and upcoming US economic data kept uncertainty elevated.
Both major crude benchmarks, Brent and US West Texas Intermediate, declined more than 1% after Trump's announcement, reversing an earlier price surge triggered by attacks on Saudi Arabia over the weekend. However, market participants remained cautious because Russia had not confirmed its participation in the proposed ceasefire.
Trump announced the proposed agreement on Truth Social early Sunday, following his call for Ukrainian President Volodymyr Zelenskyy to stop attacks on Russian refineries. He also questioned Zelenskyy's continued leadership as efforts to resolve the war remained uncertain.
"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!" Trump said on Truth Social.
Zelenskyy said he was seeking clarification about the announcement but indicated that Ukraine was prepared to support the arrangement. Kyiv's position underscored the importance of Russian participation for the proposed halt to attacks on energy infrastructure.
"Ukraine supports the ceasefire, and it is important that Russia support it as well," Zelenskyy said.
The announcement received support from Ukraine's allies, although Trump faced criticism after declaring a temporary easing of US sanctions on Russian diesel. European leaders and Ukrainian officials argued that the measure could strengthen Russian President Vladimir Putin's position.
Meanwhile, Houthi attacks on Saudi Arabia intensified concerns about regional security. At least a dozen people were killed at Riyadh's international airport on Saturday, marking the deadliest attack on Saudi soil in more than a decade, according to the source report. Another person died following a second strike on Sunday.
The attacks represented a significant escalation in Yemen's conflict. Saudi Arabia has long supported Yemen's internationally recognized government militarily against the Houthis, who are backed by Iran.
The group claimed multiple attacks over the preceding 24 hours on Sunday and threatened to continue targeting Saudi transit infrastructure.
"A theater of operations for our forces," the Houthis said, describing the kingdom's transit hubs.
Despite the escalating tensions, investors appeared less willing to push oil prices higher solely in response to geopolitical developments. SPI Asset Management analyst Stephen Innes said markets were increasingly distinguishing between headline risks and threats that could directly disrupt physical energy supplies.
"The market is no longer paying full geopolitical premium on every headline, and that is probably the most useful signal in the morning price action. A strike matters if it threatens real barrels, shipping lanes, refining capacity or insurance costs; otherwise, the market is getting increasingly reluctant to pay up simply because the geopolitical ticker flashes red. The physical market remains tight enough to keep Brent above $100, but futures are refusing to treat every new escalation as the start of another straight-line inflation shock," Innes wrote.
European markets opened higher, with gains across most major indexes and sectors. US stock futures also rose sharply, while Hong Kong, Sydney, Singapore, Wellington and Manila advanced during early trading in Asia. Losses among chipmakers SK hynix, Samsung and TSMC weighed on South Korean and Taiwanese markets, while Tokyo remained closed for a holiday.
Investors also monitored currency and precious metals markets. The dollar index steadied at 102.16, while the euro traded near $1.121 after five consecutive weekly declines linked to concerns about French public finances. The yen held at 158.24 per dollar as the possibility of Japanese intervention discouraged speculative trading.
Spot gold rose 0.1% to $4,198 an ounce, supported by a softer dollar and lower oil prices that eased inflation and interest-rate concerns. Silver gained 0.4% to $61.02 an ounce.
Attention now turns to upcoming US inflation and retail sales reports, which could influence the Federal Reserve's interest-rate decisions at its meeting scheduled for the end of October. The new earnings season also begins this week, with JPMorgan, Goldman Sachs and Bank of America expected to report results before major technology companies release their earnings later in October and November.
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