US-Iran Conflict

Exxon Mobil and Chevron posted dramatic second-quarter profit surges as the ongoing U.S.–Iran conflict choked a vital global shipping lane and drove energy prices higher. Exxon Mobil more than doubled its quarterly profit to $14.5 billion, with revenue climbing 42 percent to $116 billion, while Chevron quadrupled its earnings to roughly $12.1 billion. Six of Europe's largest oil companies earned a combined $22 billion, up 43 percent year-on-year, and Austria's OMV saw operating profit rise 65 percent to €1.71 billion.

The Strait of Hormuz remains severely restricted since hostilities began in late February. Iran claimed on Friday to have struck two U.S.-escorted tankers, and ship-tracking data recorded just 10 transits on July 31, compared with a pre-war average of 60 per day. Global refining capacity has fallen nearly 9 percent, compounded by damage to a key Qatari LNG facility.

With gasoline prices still above $4 a gallon, Exxon Mobil CEO Darren Woods cautioned against expecting near-term relief, warning that upward price pressure on petroleum products will persist into the third quarter and beyond.

The United States and Israel are preparing a large-scale bombing campaign targeting Iran's energy infrastructure, including power plants and oil refineries, with strikes possible as soon as this weekend.

President Donald Trump has not yet issued a final order but told his cabinet at Camp David on Friday that the US would "hit them very hard." The White House said Iran would not be allowed to obtain nuclear weapons, while the Pentagon said it was "ready to fire." Planning is aimed at completing operations before markets open Monday. Some White House political advisers have opposed the plan, and Trump may pause strikes if diplomatic progress emerges. An Israeli official, however, said Israel had not been asked to participate.

Iran called the plans reckless and said it has prepared a comprehensive response, including strikes on Israeli and US energy assets in the region. Hostilities between the US, Israel, and Iran have continued at varying intensity since joint strikes in February, despite a short-lived June ceasefire.

The United States is considering a new wave of military strikes against Iran that could begin as early as this weekend, potentially targeting Iranian energy infrastructure in one of the largest operations of the six-month conflict. Israel may also rejoin the campaign, though President Donald Trump has not yet issued a final order to launch the raids. At a cabinet meeting at Camp David on Friday, Trump pledged to strike Iran "very hard."

Iran responded with threats of retaliatory strikes on critical infrastructure in Israel and Gulf states, with the state-affiliated Fars news agency warning that globally significant energy facilities in Saudi Arabia and Qatar are within range of Iranian missiles. Tasnim cited a senior Iranian security official as saying a comprehensive counterattack plan is in place, listing installations in Kuwait and the UAE as potential targets.

Iran has struck Gulf energy assets with missiles and drones since the war began in late February, including Qatar's LNG facilities and Kuwaiti oil installations. Gulf air defences have intercepted many projectiles, but Patriot missile stockpiles are reportedly running low. A tanker was struck by an unidentified projectile off Oman, sustaining engine-room damage. A June framework agreement failed to produce a lasting ceasefire.

President Donald Trump said the United States would continue military action against Iran until Tehran can no longer threaten American forces or pursue nuclear weapons, claiming U.S. strikes destroyed Iran's entire navy of 159 ships and all 200 of its aircraft.

Trump linked the campaign to a proposed Hamas disarmament agreement and said Steve Witkoff, Jared Kushner, JD Vance and Marco Rubio remain involved in negotiations, even as he accused Iranian officials of lying about their commitments after missiles were launched at a U.S. base in Jordan during talks. Secretary of State Rubio said a "split" has emerged among Iranian officials, while Tehran has not sought to resume diplomacy for more than two weeks.

Inside Iran, a dispute erupted between President Masoud Pezeshkian's government and state television over remarks about negotiations, as hardliners opposed to a deal assaulted Pezeshkian and Foreign Minister Abbas Araghchi. Iran also rejected an Omani proposal for joint administration of the Strait of Hormuz.

Iran’s military said Friday it launched a drone attack on U.S. facilities in Kuwait, targeting aircraft shelters, satellite communications systems, and equipment storage at Ahmad al-Jaber Air Base. The Iranian army described the strike as a response to a recent U.S. attack on a home on Qeshm Island in the Strait of Hormuz that killed three members of a family.

The escalation follows a collapse of diplomatic efforts, with Pakistan's foreign ministry saying it is working to restore the Islamabad framework agreed in mid-June after negotiations derailed in early July. Since the war began on Feb. 28, Iran has effectively blockaded the Strait of Hormuz, through which 20% of global oil transits.

Markets remain volatile; oil surged back above $90 a barrel after the latest attack, while U.S. President Donald Trump vowed retaliation.

The US Senate rejected a war powers resolution that would have limited President Donald Trump's authority to wage war in Iran, falling one vote short in a 49-50 tally on Wednesday. Senator John Fetterman crossed party lines to vote with Republicans against the measure, while three Republican senators — Susan Collins, Lisa Murkowski and Rand Paul — backed it alongside Democrats. Senate Majority Leader Mitch McConnell was absent, still recovering from a fall in June.

The vote followed a fresh wave of US airstrikes in Iran on Tuesday, launched in retaliation for an Iranian missile attack on a US base in Jordan. Trump had briefly suspended strikes last Friday to pursue negotiations before resuming the offensive. The conflict, which began on 28 February, has killed at least 18 US service members and wounded more than 450.

The Pentagon has told Congress it needs about $80bn more to sustain operations, adding to the $37bn already spent. An AP-NORC poll found roughly two-thirds of US adults consider the war not worthwhile.

The United States received a cool reception from European allies for its renewed push to form joint patrols in the Strait of Hormuz, after plans for a high-level London meeting were disclosed last week. Defence Secretary Pete Hegseth urged the United Kingdom and France to join a naval coalition, but diplomatic efforts have stalled.

A US pause in strikes on Iran since Friday ended when Iran launched a surprise attack on American forces on Tuesday night, which US Central Command said was intercepted. President Donald Trump had told Fox News earlier that day that talks with Iran were progressing, though analysts warn the conflict could drag on for months over control of the waterway.

Separately, Oman-mediated talks in Tehran ended with little concrete progress, despite Iranian Foreign Ministry spokesperson Esmail Baghaei describing them as fruitful. Iran has pushed to establish a strait authority to levy tolls, while shipping traffic remains overwhelmingly on Iran's preferred route over a US-backed Omani alternative.

U.S. stocks suffered their steepest drop since April 2025, with the Dow Jones Industrial Average tumbling 1,153 points, or 2.2%, as escalating tensions between Washington and Tehran rattled investors. The S&P 500 slid 1.5% and the Nasdaq Composite fell 1.7%, ending more than 10% off its all-time high.

The selloff followed President Donald Trump's pledge to strike Iran "hard" after U.S. Central Command intercepted missiles targeting American military facilities in the Middle East. West Texas Intermediate crude futures surged more than 6% to $84.46 a barrel. Semiconductor shares bore heavy losses, with the SOX index dropping over 5%, though UBS argued the sector's selloff is overblown.

The Federal Reserve held interest rates at 3.5–3.75%, with three regional bank presidents dissenting in favor of a quarter-point hike. The 30-year Treasury yield jumped above 5.2%, its highest since 2007. Fed Chairman Kevin Warsh said the central bank will not hesitate to act when necessary.

An Iranian strike hit a building belonging to a Chinese company in northern Kuwait on Thursday, killing one worker and severely damaging the structure, Kuwait's defence ministry said, as the wider regional conflict intensified.

Kuwaiti military spokesman Brigadier Saud Abdulaziz Al-Otwan confirmed the Iranian attack targeted the Chinese-owned facility in the country's north. Meanwhile, Jordan intercepted five missiles launched from Iran.

The US military said it completed a wave of large-scale strikes against Iran in response to the missile attack on an American base in Jordan. US Central Command said the raids hit dozens of Islamic Revolutionary Guard Corps targets, including military command centres, missile and drone facilities, and several coastal surveillance and defence positions. Iran wrote on X that “with God's help, the aggressor will be punished today.”

Oil prices surged more than 7% on Tuesday after the United States and Saudi Arabia launched airstrikes against Iran-backed groups in Iraq, reversing a brief market rally that had followed a pause in hostilities.

Brent crude rose to around $90 a barrel and US WTI climbed above $84 as tensions escalated following Iran's attacks on ships in the Strait of Hormuz and US bases in Jordan. President Donald Trump vowed retaliatory strikes against Iran in a Fox News interview, while Tehran rejected an Omani proposal for joint management of the strategic waterway and seized three tankers.

Adding upward pressure, US crude inventories fell by 7.2 million barrels last week and OPEC+ is expected to halt output increases for three months starting in October.