Iran has simultaneously kept Hormuz under military control, attacked tankers that entered routes it had not authorized and threatened to block all regional exports of oil, gas and petrochemicals while U.S. attacks continue.
Politics, Geopolitics & ConflictIran has spent the week attacking the military infrastructure that allows the U.S. to wage war across the Middle East.
Together, the Strait of Hormuz and the Bab el-Mandeb are among the world's most strategically important maritime chokepoints.
Discovery & DevelopmentThe Permian Basin is already running out of natural gas pipeline capacity again.
TotalEnergies doubled second-quarter profit as the Middle East war drove oil and gas prices higher, reinforcing how integrated energy majors are converting geopolitical disruption into record earnings.
Iran has now put both of the Middle East’s principal oil-export corridors under attack. Yemen’s Houthis struck the Saudi tankers Encelia and Layla in the Red Sea after declaring a blockade on Saudi-linked shipping through the Bab el-Mandeb Strait, setting both vessels on fire and threatening the route Riyadh has used to bypass Iran’s closure of Hormuz. Saudi Arabia has been moving millions of barrels per day across the kingdom to the Red Sea port of Yanbu through its East-West pipeline, but those exports must still pass through Bab el-Mandeb to reach…
Iran has spent the week attacking the military infrastructure that allows the U.S. to wage war across the Middle East. After 12 consecutive nights of U.S. strikes on Iranian command centers, missile sites, air defenses and nuclear-linked facilities, Tehran hit American radar, communications, air-defense and aviation assets in Bahrain, Kuwait and Jordan, including facilities tied to the Fifth Fleet, Camp Arifjan, Ali Al Salem Air Base and Muwaffaq Salti Air Base. Iranian attacks have now killed U.S. personnel in Jordan, Kuwait, Iraq and Saudi Arabia. Iran has simultaneously kept Hormuz under military control, attacked tankers that entered routes it had not authorized and threatened to block all regional exports of oil, gas and petrochemicals while U.S. attacks continue. Washington is answering with an expanded bombing campaign, restored naval blockade and threats of a bigger assault.
Politics, Geopolitics & Conflict
Iran has spent the week attacking the military infrastructure that allows the U.S. to wage war across the Middle East. After 12 consecutive nights of U.S. strikes on Iranian command centers, missile sites, air defenses and nuclear-linked facilities, Tehran hit American radar, communications, air-defense and aviation assets in Bahrain, Kuwait and Jordan, including facilities tied to the Fifth Fleet, Camp Arifjan, Ali Al Salem Air Base and Muwaffaq Salti Air Base. Iranian attacks have now killed U.S. personnel in Jordan, Kuwait, Iraq and Saudi Arabia. Iran has simultaneously kept Hormuz under military control, attacked tankers that entered routes it had not authorized and threatened to block all regional exports of oil, gas and petrochemicals while U.S. attacks continue. Washington is answering with an expanded bombing campaign, restored naval blockade and threats of a bigger assault.
Iran has now put both of the Middle East’s principal oil-export corridors under attack. Yemen’s Houthis struck the Saudi tankers Encelia and Layla in the Red Sea after declaring a blockade on Saudi-linked shipping through the Bab el-Mandeb Strait, setting both vessels on fire and threatening the route Riyadh has used to bypass Iran’s closure of Hormuz. Saudi Arabia has been moving millions of barrels per day across the kingdom to the Red Sea port of Yanbu through its East-West pipeline, but those exports must still pass through Bab el-Mandeb to reach the Atlantic. Together, the Strait of Hormuz and the Bab el-Mandeb are among the world's most strategically important maritime chokepoints. Before the war, the Strait of Hormuz carried roughly one-fifth of global oil consumption and LNG trade, while the Bab el-Mandeb handled about 12% of global seaborne trade and a significant share of oil shipments between the Middle East and Europe.
President Erdo?an’s campaign to neutralize Turkey’s main opposition has produced a second national opposition movement instead. Former Republican People’s Party (CHP) chairman Özgür Özel has abandoned the party after a court annulled the congress that elected him and reinstated former leader Kemal K?l?çdaro?lu, a ruling that Özel’s supporters describe as judicial intervention. The new party is expected to attract dozens of CHP lawmakers and early polling suggests it could expand beyond the CHP’s traditional secular base by drawing Kurdish voters, Turkish nationalists and religious conservatives into a broader anti-Erdo?an coalition.
The EU has tightened sanctions on Russian energy while preserving one of Moscow’s most important LNG export lifelines. The bloc’s 21st sanctions package bans new contracts to ship Russian LNG to third countries but exempts existing Greek shipping agreements, allowing Dynagas to continue transporting cargoes from Novatek’s Yamal LNG project under contracts dating back to 2015. Dynagas handled roughly 35% of Novatek’s LNG shipments during the first half of 2026 and operates 11 vessels dedicated to the project, including seven ice-class carriers. The package also freezes the G7 price cap on Russian crude at $44.10 per barrel for another year, despite rising global oil prices. The carve-out preserves a significant source of Russian LNG export revenue while allowing Brussels to claim another escalation in sanctions. It’s a paper tiger, at best.
Deals, Mergers & Acquisitions
Repsol is putting new Venezuelan oil ahead of the $5.4 billion Caracas still owes it. The Spanish energy group held production at roughly 71,000 barrels of oil equivalent per day during the first half of 2026 but now plans to raise output by 50% within a year and triple it over three years, using expanded operational and export rights secured under Venezuela’s new energy reforms. Chief Executive Josu Jon Imaz said Repsol will prioritize payment for current production and leave the historic debt untouched for now. That gives Venezuela the foreign capital and operating expertise needed to raise output without resolving the $5.4 billion it already owes the company.
Discovery & Development
The Permian Basin is already running out of natural gas pipeline capacity again. Kinder Morgan said its expanded Gulf Coast Express (GCX) pipeline filled almost immediately after entering service, relieving the basin’s gas glut, lifting Waha prices and strengthening the commercial case for another round of multi-billion-dollar takeaway projects. The company is now advancing additional expansions, including the Permian Link pipeline targeted for 2030, while evaluating more than $1 billion of new investment decisions during the second half of the year. The rapid absorption of new capacity reinforces how quickly AI-driven power demand, LNG export growth and rising Gulf Coast industrial consumption are outpacing new infrastructure.
APA Corporation has brought a new Egyptian gas discovery into production within weeks of its discovery. This is one of the first tangible results of Cairo’s campaign to increase upstream investment. The company’s Khalda Petroleum JV is already producing 40 million cubic feet of natural gas per day from the Wanda field in Egypt’s Western Desert after constructing a dedicated 10-kilometer pipeline to fast-track first gas, with full connection to the national grid expected by the end of July. This all follows Egypt’s decision to eliminate ~$6.1 billion in outstanding payment arrears owed to foreign oil and gas companies, luring them back onto the field.
Enbridge has begun construction on its ~$2.8 billion) expansion of its Westcoast pipeline system, adding 300 million cubic feet per day of natural gas transportation capacity in British Columbia. The Sunrise Expansion Program includes approximately 140 kilometers of new pipeline and additional compression facilities and is slated to go online in late 2028.
Energy Earnings Beat
Kinder Morgan raised its full-year earnings guidance after reporting record second-quarter results, citing another surge in U.S. natural gas infrastructure demand. Adjusted EBITDA rose 12% year over year to $2.2 billion, comfortably ahead of expectations, as the company said 92% of its $9.6 billion project backlog is now tied to natural gas projects. More than 60% of that backlog is dedicated to supplying power generation and local distribution networks, underscoring how rapidly AI-driven electricity demand is reshaping U.S. pipeline investment. Management also said it expects to sanction more than $1 billion of additional projects during the second half of the year as demand for new gas infrastructure continues to rise.
TotalEnergies doubled second-quarter profit as the Middle East war drove oil and gas prices higher, reinforcing how integrated energy majors are converting geopolitical disruption into record earnings. Net profit climbed to $5.4 billion from $2.7 billion a year earlier as higher hydrocarbon prices, trading gains and more than 4% production growth from new projects in Brazil, the U.S. and Libya more than offset production losses and export disruptions in the Middle East.
