US Futures Mixed as Brent Oil Holds Above $105 Amid Inflation Fears

Key points

• Brent crude oil traded above $105 per barrel, keeping energy costs elevated.
• US stock futures were mixed, reflecting uncertainty in the market.
• A University of Michigan preliminary report showed US consumers expect 4.7% inflation over the next year, up from 4.6% in September.
• Consumer sentiment fell sharply among Americans with lower incomes and smaller stock portfolios.
• European indices rose, with Germany’s DAX up 0.7% and Britain’s FTSE 100 up 0.7%.
• Asian markets were mostly lower, with Tokyo closed for a holiday.

Background

Oil prices surged past $105 per barrel on October 8, 2026, driven by a spike in tanker attacks in the Strait of Hormuz and production halts in the US Gulf Coast due to Hurricane Isaias. This supply shock triggered a global sell-off in stocks and bonds, raising inflation fears. The International Energy Agency pledged to accelerate the release of emergency oil stocks to mitigate the impact, though analysts noted much of this supply was already priced into the market. Prior to this, Brent crude had briefly rebounded above $100 per barrel following Houthi attacks on Saudi airports, despite partial recovery in Gulf oil exports.

Why it matters

Sustained high oil prices and rising consumer inflation expectations create significant pressure on corporate profits and household budgets. The sharp decline in consumer sentiment among lower-income groups suggests potential economic strain, while mixed US futures indicate market uncertainty regarding the balance between inflation risks and growth prospects.

What to watch

Investors will monitor whether Brent crude prices remain above $105 per barrel and how this impacts corporate earnings and consumer spending. Further updates on the University of Michigan consumer sentiment report and any changes in the International Energy Agency's emergency stock releases will be critical for assessing inflation trajectories and market stability.