Good morning. A new week begins, and all investors focused on the Middle East, and the oil price, of course. Oil price continued to surge on Sunday, and Brent Crude once hit $70, the highest since May 2019. After the killing of Iranian Gen. Qassem Soleimani last week, people in Iran were united and struck, pushing up the economic costs of oil production. As geopolitics tensions grow, more countries are involved. Saudi Arabia was warned that the risk of its oil facilities being attacked would increase, further pushing gauges in the energy sector jumped.

Crude is particularly sensitive to geopolitics issue, as the gulf for exporting oils is shared by Saudi Arabia, Iran, and Iraq.

The volatility of oil jumped back to a support level around $30, while the RSI, hitting 80, shows the trading volume recovered. But the volatility is far less than that of September last year, when oil facilities in Saudi were attacked, indicating that people wait and see actions that will be taken by both parties, whether stronger of will compromise, and the reactions which are kind of unpredictable.

Besides the Brent Crude, gold surged to the highest price since 2013. Other havens are also hot, as Japanese Yen once matched a three-month high place, and Treasuries edged higher.

In the pre-market, all three major stock indexes dropped more than 0.7%, and stock futures declined as well.