U.S. equities opened slightly lower on Monday as investors digested Tesla’s highly anticipated Robotaxi launch and geopolitical tensions from the weekend U.S. strike on Iranian nuclear facilities. Meanwhile, oil prices edged up, signaling tentative stability in the energy markets.

As of 9:31 a.m. ET, the Dow Jones Industrial Average fell 12.28 points, or 0.03%, to 42,194.54. The S&P 500 dipped 2.37 points, or 0.04%, to 5,965.47, and the Nasdaq Composite dropped 71.52 points, or 0.37%, to 19,375.89, according to Yahoo Finance.

Crude oil for August delivery rose 0.18% to $73.97 per barrel at 9:22 a.m. ET, recovering modestly from overnight volatility following President Donald Trump’s confirmation of U.S. airstrikes on Iranian nuclear sites.

Iran Tensions Ripple Through Markets, But Fear Fades

The market reaction to President Trump’s Saturday announcement of targeted strikes on Iran’s nuclear facilities has been more muted than past episodes of Middle East conflict. On his Truth Social platform, Trump declared that Iran’s Fordow site had been “eliminated.” But rather than triggering a broad sell-off, markets responded with relative calm.

Dan Ives, Managing Director at Wedbush, suggested the market is viewing the action as “positive news because the nuclear threat in the region has been eliminated”. Analysts across the board agree that investors expect the conflict to remain contained, particularly given the lack of immediate retaliation from Iran and the absence of regional escalation.

Still, the threat of disruption lingers. Goldman Sachs has warned that oil could surge to $150 per barrel if Iran attempts to close the Strait of Hormuz—a strategic chokepoint for 20% of global oil trade. For now, however, crude is trading near $74, up roughly 10% month-over-month, suggesting the market sees the risk as manageable.

Tesla’s Robotaxi: “This Is the Future,” Wedbush Says

While global risk looms in the background, Tesla (TSLA) stole the spotlight Monday morning with its Robotaxi debut in Austin, Texas. Analysts at Wedbush, including Daniel Ives, attended the launch and took multiple fully autonomous rides. Their verdict: a “comfortable, safe, and personalized experience” that marks the dawn of a “$1 trillion autonomous journey."

“There was never a moment in the vehicle where we felt as if it did something irrational,” the Wedbush team wrote in a note. “Overall, these Robotaxis exceeded our expectations and offered a seamless and personalized travel experience that has lit the spark for autonomous driving."

Wedbush reiterated its “Outperform” rating and $500 price target on Tesla, citing the service's potential to revolutionize mobility. The initial rollout includes only a dozen vehicles and is limited to Texas, where regulations remain lenient. Still, questions around safety and scalability remain, particularly as federal regulators continue to investigate Tesla’s Full Self-Driving (FSD) technology.

Investor Caution as Week Begins

Despite the promising debut from Tesla and oil’s stable open, broader market sentiment remains cautious. Investors are weighing the implications of prolonged geopolitical risk, regulatory pressure on tech firms, and potential ripple effects from rising energy prices.

The opening bell may have rung in the red, but as the day unfolds, much depends on the direction of oil prices, Iran’s next move, and whether Tesla’s autonomous gamble can maintain its momentum beyond the Austin launchpad.