Dow sinks 653 points as Brent oil settles at $116.72, highest since April

Oil drove the move: Brent crude, the global benchmark, settled at $116.72 a barrel, up $3.55 or 3.1%, its highest close since April 29, Reuters reported. U.S. crude (WTI) settled at $103.27, up 3.8%. Brent rose 6% for the week. Reuters tied the jump to Houthi attacks across Saudi Arabia, including on energy sites, and to an oil spill from an unidentified tanker off the UAE. CNBC also pointed to reports that the U.S. and Israel may be planning renewed strikes on Iran; Iranian officials have said they would strike back. The S&P 500 energy sector rose 2.5% to a record high.

Who fell, who rose: Dow member American Express fell 3.7% after announcing it will cut about 5% of its workforce, and Caterpillar and Goldman Sachs also weighed on the index, CNBC said. AT&T and T-Mobile each sank nearly 8% after a report that SpaceX is seeking thousands of cell sites for a fourth wireless carrier, while tower owner Crown Castle jumped 9%, Reuters said. Chip stocks rose 0.4% after Thursday's steep drop; Meta slipped about 1% and Microsoft gained 0.7%. The 10-year Treasury yield rose to about 4.99%.

Consumers near record gloom: The University of Michigan's final October consumer sentiment index came in at 48.0, versus 48.1 in September and 53.6 a year ago. Reuters said it is the second-lowest reading on record, after May's 44.8, though above the 46.3 economists polled by Reuters had expected. Americans expect prices to rise 4.7% over the next year, up from 3.4% in February before the Iran war began, and 3.5% a year over the long run. Some 85% said it is a bad time to buy a house, and 62% of those blamed high interest rates, up from 47% last month. Sentiment rose among Republicans and Democrats but fell among independents, to 42.4 from 47.7, Reuters reported.

Friday in five numbers: Dow down 652.82 points. Brent at $116.72, versus about $72 in February before the war, per the Guardian. U.S. crude above $100, at $103.27. Regular gas at $4.29 a gallon (AAA), $1.22 above a year ago, and diesel at $6.32 versus $3.63. Consumer sentiment at 48.0, near the record low.

What's still unknown: Whether the U.S. and Israel will resume strikes on Iran. The New York Times, citing unnamed U.S. officials, reported plans for strikes after the Nov. 3 midterms, but neither government has confirmed them. Also unknown is whether the AI selloff resumes when Alphabet, Microsoft and Amazon report earnings next week. See Thursday's story: /article/fin-ai-selloff-meta-oil-112.

Updated Friday evening, Oct. 23, with official closing index levels (Reuters, CNBC), oil settlement prices (Reuters, CNBC) and the University of Michigan's final October consumer survey; this morning's version carried late-morning intraday figures. Gas prices are AAA's national averages for Oct. 23. The report of planned U.S. and Israeli strikes on Iran after the Nov. 3 midterms comes from The New York Times citing unnamed U.S. officials and has not been confirmed by either government. Iran's threats are attributed to Iranian officials. Photos are file images, not from Friday.