Global oil prices surged this week, with Brent crude nearing $79 per barrel as fresh US strikes on Iran intensified tensions in the Middle East and raised concerns over critical energy supply lines. The disruptions have directly impacted traffic through the Strait of Hormuz, a vital waterway for global oil transport. This geopolitical uncertainty has fueled a rapid reassessment of energy supply risks, with prices climbing sharply after a period of relative calm.
In corporate news, PepsiCo released its second-quarter 2026 earnings, reporting net revenue of $24.18 billion, a 6.4% increase year-over-year. Diluted earnings per share stood at $2.18, though the company's adjusted earnings of $2.20 per share narrowly missed analyst expectations. While revenue figures surpassed forecasts, the stock saw a dip in pre-market trading, with investors focusing on margin pressures and a cautious full-year profit outlook. The company affirmed its full-year guidance but indicated results might trend toward the lower end of the EPS range.
In the tech and space sectors, SpaceX continues its ambitious test flight schedule for the Starship program. The company recently conducted a static-fire test of all six Raptor engines on Ship 40, a significant step towards its 13th test flight, which is anticipated within the next month. Despite previous launch challenges, SpaceX is pushing forward with its development, aiming for operational readiness in its pursuit of lunar and beyond missions. The market is closely watching these developments alongside the broader economic landscape, which remains influenced by energy price volatility and corporate performance.
