According to media reports, Israel launched a large-scale overnight strike on Iranian territory, targeting dozens of military and strategic facilities linked to the country’s nuclear programme and missile capabilities. Israeli officials justified the action by citing an existential threat from Tehran, which, according to their intelligence, is accelerating its development of nuclear weapons and expanding its arsenal of ballistic missiles.

In response, Iran has vowed severe retaliation, stating that the United States and Israel will “pay a heavy price” for the attack. US President Donald Trump has urgently convened a meeting to assess the situation.

Commodities Market Reaction

In the wake of these developments, gold — the primary safe-haven asset — surged sharply. The XAU/USD price broke above its May high, rising past $3,440. However, the all-time high near $3,498 remains intact for now.

Oil prices also spiked due to fears of supply disruption. The military conflict threatens shipping through the Strait of Hormuz, a crucial chokepoint through which one-fifth of the world’s oil supply passes. Traders quickly priced in the risk of war, anticipating a supply shortage driven by large-scale instability in the Middle East.

Technical Analysis of the XBR/USD Chart

Brent crude oil price has risen to the upper boundary of a large-scale descending channel (shown in red), which is defined by lower highs from 2024–2025. As anticipated, this upper boundary acted as resistance, with the price forming a peak above $76 before reversing downward (as illustrated by the black arrow).

From a technical standpoint, following such a sharp rally, Brent is vulnerable to a corrective move. In this scenario, a pullback into the orange zone is possible, where support may be found at:

→ The psychologically important $70 level;
→ The 50% Fibonacci retracement level;
→ The former resistance of the purple descending trendline, now turned support.

Nevertheless, given the scale of the geopolitical threat, it is unlikely that market sentiment will allow Brent to decline significantly in the near term.

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