Company Interview / the open: Geopolitical tensions soar 💥 ASX to slip

The local market will be among the first to react to the conflict in the Middle East with energy stocks and gold stocks set to rally. S&P/ASX 200 futures are pointing down 0.2% following a record-breaking close on Friday. 

Global stocks fell on Friday, weighed down by ongoing concerns about high valuations and the threat of AI disruption. On Wall Street, financial and tech stocks were hit hard with US stocks suffering their largest monthly percentage declines in a year. 

Oil prices had risen around 3% on Friday ahead of strikes on Iran. Brent crude jumped 10% to about $80 a barrel on Sunday, while OPEC+ has said it plans to boost production. Gold rose to near a one-month high on Friday ahead of the outbreak of hostilities in the Middle East. 

Israel has launched a new wave of strikes on the Iranian capital of Tehran, while Iran has responded by launching more missiles at US assets in the Middle East. This follows the assassination of Iran's Supreme Leader Ali Khamenei, which has thrown the region into chaos and put the global economy on edge.  

The US dollar has risen along with safe haven currencies including the Swiss Franc, while risk sensitive currencies such as the Australian dollar have fallen in early trading.