Morning Note: Mideast Tensions Drive Oil & Gold Volatility; Tesla Rolls Out Robotaxi

Geopolitical Tensions Push Oil to 5-Month Highs

Oil prices briefly surged to five-month highs as investors anxiously awaited a potential Iranian response to U.S. strikes on its nuclear facilities. Markets remained on edge due to the heightened geopolitical risks, which could disrupt global economic activity and fuel inflation. Some optimists held out hope that Iran might retreat now that its nuclear ambitions had been curbed, or that a possible regime change could usher in a more conciliatory government.

However, historical precedent offers caution. Previous regime changes in the region have often triggered significant oil price spikes, reaching up to 76% in some instances, with an average increase of around 30% over time. Central to the tension is the Strait of Hormuz, a strategic chokepoint only 33 km (21 miles) wide at its narrowest, through which roughly 25% of global oil trade and 20% of liquefied natural gas shipments pass.

(Crude Oil Futures Daily Chart, Source: Trading View)

From a technical analysis perspective, crude oil futures have been moving in a bullish trend since April 2025, as indicated by a series of higher highs and higher lows, along with a double bottom candlestick pattern that suggests strong bullish momentum. Recently, it has broken above the order block of 71.50 – 72.50, which may potentially continue to move higher to retest the resistance zone of 78.20 – 79.20.

Gold Remains Volatile Amid U.S Strikes on Iran Nuclear Sites

Gold remains volatile on Monday during the Asian trading session, as investors remained focused on the escalating conflict in the Middle East after the U.S. launched strikes on Iran’s nuclear facilities. Over the weekend, U.S. forces targeted Iran’s three main nuclear sites, prompting President Donald Trump to issue a stern warning of further military action unless Tehran agrees to peace. The renewed hostilities between Israel and Iran have intensified perceived safe-haven demand, pushing gold prices nearly 30% higher year-to-date.

(Gold 8H Price Chart, Source: Trading View)

From a technical analysis perspective, the gold daily chart has been rejected from the resistance zone of 3,425 – 3,445, driving it lower and break below the order block of 3,380 – 3,395. However, the bullish momentum has driven it higher to retest the order block and was rejected by the order block again. Therefore, such a valid bearish structure may potentially drive the price lower to retest the support zone of 3,310 – 3,330.

Tesla Launches Robotaxi Trial in Austin for $4.20 a Ride

Tesla quietly launched its long-anticipated robotaxi service in Austin, Texas, on Sunday, deploying around 10 Model Y SUVs under tightly controlled conditions. Rides were offered for a flat fee of $4.20, according to CEO Elon Musk in a post on X (formerly Twitter). Several social media influencers were spotted booking and riding in the robotaxis at various Austin locations, as shown in videos reshared by Musk.

Musk emphasised the company's cautious approach, noting that Tesla is being "super paranoid" about safety. Each vehicle includes a safety monitor seated in the front passenger position, and the fleet is also remotely overseen by humans. This remote oversight, known as "teleoperation," is a common feature among the few robotaxi startups operating globally.

(Tesla Daily Share Price Chart, Source: Trading View)

From a technical analysis perspective, Tesla’s share price has rebounded and been moving in a bullish trend since April 2025, as indicated by a pattern of higher highs and higher lows. However, it was recently rejected at the resistance zone between 352 and 364, which pushed the price lower. The stock has since found support at the swap zone between 274 and 286, forming a higher low. This valid bullish structure may potentially drive the price higher to retest the resistance zone.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.