Europe’s surge in energy prices after the Iran conflict disrupted supply has revived inflation worries. Data show European gas storage is only about 63%, leaving policymakers and bond investors more focused on rising natural gas prices than higher crude futures. A sharp jump in gas prices could add to inflation and push the European Central Bank toward more rate hikes than markets expect, after its first increase in June and with another move anticipated in September.

The LME copper cash premium narrowed sharply after about 20,000 tons arrived, pushing the cash-to-three-month spread from $545 a ton on Monday to $248. A U.S. Commerce Department recommendation on refined copper duties that was due June 30 has not been published, leaving a proposed 15% tariff for January 2027, rising to 30% in 2028, unresolved. Despite a rebound in inventories last week, on-warrant stock remains down roughly 75% from its mid-April peak.

LME aluminum stocks have fallen to their lowest level since 1990. Norsk Hydro’s Alunorte alumina refinery in Brazil cut output by 50% after an interruption to natural gas supplies, despite annual capacity of 6.3 million metric tons. The news lifted London aluminum nearly 2% to $3,373 a metric ton and pushed Shanghai alumina futures up 1%. Copper futures in London also rose above $14,000 per ton as metal flows into the U.S. ahead of a possible U.S. tariff tightened global supply.

Oil and Natural Gas Corporation reported net profit of 170.34 billion rupees (about $1.8 billion) for the quarter ended June, more than doubling from a year earlier and beating expectations. Revenue rose 45% year on year to 464.60 billion rupees. The gain was driven by a near-50% jump in average Brent prices amid tighter Persian Gulf supply linked to the U.S.-Iran war, alongside a weaker rupee. Output fell 3.4%, but per-barrel earnings increased 50.4% and profits from newer deepwater acreage surged 61.5%.

Several major oil companies posted record second-quarter profits as the Middle East conflict helped lift crude prices. Brent crude averaged $92.55 per barrel in the second quarter, up 45% from the Q1 2026 average of $63.68/bbl. The Energy sector’s earnings rose 128.2% year over year, outpacing the S&P 500’s average earnings growth of 37.9%.

Saudi Arabia’s second-quarter crude output dropped sharply as war-related disruptions pushed the oil sector into a contraction of nearly 25%, weighing on the broader economy. Over the same period, Brent crude climbed more than 47% to around $90 a barrel, helping oil revenue rise 28% quarter on quarter. Fiscal data show the Q2 deficit narrowed to $9.1 billion, while the budget breakeven oil price increased to $115 a barrel from $96 last year. The developments have directly affected the global oil market’s supply-and-demand balance.

Nordex reported 2024 second-quarter revenue of EUR 2.18 billion, up 16.3% year over year, while EBITDA more than doubled to EUR 223.8 million and the EBITDA margin rose to 10.3%. Project order intake increased 32.2% to 3.05 GW, with new orders valued at EUR 3.0 billion. The company also reaffirmed its full-year 2026 guidance. The figures point to improving demand and profitability in Europe’s wind equipment market, offering fundamental support to euro area industrial manufacturing assets.

Saipem reported first-half 2026 revenue of €7.35 billion, up 1.9% year on year, and adjusted EBITDA of €836 million, up 9.4%. The company said it absorbed about €70 million in additional security, logistics and operational costs tied to the Middle East conflict in the first six months. It lowered its full-year adjusted EBITDA outlook while keeping its revenue and cash flow forecasts unchanged. The update underscores how geopolitical risk can weigh on profitability for oil-and-gas engineering contractors.

Baker Hughes reported record second-quarter orders totaling $10.5 billion, up 49% year over year, with Industrial & Energy Technology (IET) orders more than doubling to $7.1 billion. Remaining performance obligations climbed to a record $40.1 billion, including $37.1 billion tied to IET, and the company posted revenue of $6.74 billion with adjusted EBITDA of $1.23 billion. The company said it has secured LNG equipment awards from Venture Global, Cheniere Energy, Golar LNG and Nigeria LNG, and it completed its acquisition of Chart Industries to expand gas-processing capabilities.