Market-moving news for Monday, October 12, 2026

What happened

The Iran-backed Houthis struck Riyadh's King Khalid International Airport a second day in a row on Sunday, hitting terminals 3 and 4, killing one person believed to be Pakistani and injuring 11 — a day after Saturday's missile attack killed at least 13, including a U.S. citizen, and injured more than 300 in the deadliest attack on Saudi territory in decades. Saudi civil aviation authorities confirmed a separate attack on King Fahd International Airport in Dammam on Sunday evening, with damage assessments under way. The Houthis have now targeted the Riyadh airport four times in a week. President Trump said Saturday evening he was evaluating U.S. participation in Saudi strikes against the Houthis: "We may. We're going to look at it... We move very quickly." The Times reported that Turkey and Pakistan are to send troops to support Saudi Arabia under a defense pact signed this year, and Syria has sent drone operators to Aden. The U.S. Mission in Saudi Arabia issued a security alert Sunday telling American nationals to avoid King Khalid airport and warning of airspace restrictions and flight cancellations.

What happened

Following a phone call between Donald Trump and Vladimir Putin on Friday, Oct. 9, the U.S. Treasury Department authorized transactions involving Russian-origin diesel fuel through April 7, 2027 — effectively lifting the sanctions that had been depriving Moscow of fuel revenue. Trump announced on Truth Social that Russia will immediately release 300,000 tonnes of diesel to the U.S. and global markets, followed by 500,000 tonnes in November and 1 million tonnes after that, with a further 3 million tonnes 'within a short period of time' depending on the condition of Russian refineries. The deal drew immediate backlash: retiring Sen. Thom Tillis (R-NC) said Sunday there is 'a legitimate case for saying the president's not following the law,' and Rep. Don Bacon (R-NE) called it 'morally wrong' to prop up Putin's war economy. Treasury Secretary Scott Bessent defended the move on Fox News Sunday, insisting the administration has the legal authority and that the deal will lower prices. Germany said Saturday it will maintain its Russia sanctions, and Zelensky pushed back Sunday at Trump's demand that Ukraine stop striking Russian refineries, saying Kyiv would stop only if Russia stops striking Ukrainian energy infrastructure.