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Trading for WTI crude opened sharply higher on Monday, with a roughly 10% gap from Friday’s close, as tensions in the Middle East spiked over the weekend. Israel and the United States carried out airstrikes on Iranian targets, reportedly killing the country’s supreme leader, Ali Khamenei. In retaliation, Iran launched missiles and drones targeting Israel, Saudi Arabia, and other locations.Markets had partially priced in geopolitical risks, yet the response was dramatic: → Gold (XAU/USD): surged above $5,400 per ounce as investors sought safe havens. → US Dollar Index (DXY): strengthened, supported by both safe-haven demand and concerns over rising global inflation due to energy price pressures. → Equities: opened lower, with airlines and tech hardest hit, while defence stocks outperformed. → Oil: showed the strongest reaction, reflecting the heightened geopolitical risk premium.Shipping in the Strait of Hormuz, which handles around 20% of global oil supply, remains severely disrupted. Prices on the XTI/USD chart are swinging sharply as traders reassess fair value under extraordinary conditions.Technical Overview: XTI/USDAn ascending channel drawn earlier this week remains relevant: → The channel’s upper boundary acted as resistance at Monday’s open. → Its median line provided upward support.Bearish view: → After the bullish gap, prices briefly faltered and retraced sharply. → The $73 round figure has emerged as resistance.Bullish view: → The channel’s median now serves as support. → The $70 psychological level underpins buyers.WTI is likely to remain highly volatile between $70 and $73, with price movements largely shaped by geopolitical developments in the Middle East.FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot (additional fees may apply). Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!TheFXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
