Key Takeaways
- BHP (BHP) reported a 30% rise in annual underlying profit to $13.2 billion, as copper surpassed iron ore as its primary earnings driver for the first time.
- Iran launched two ballistic missiles toward the UAE targeting maritime traffic; the missiles fell into the sea, but the incident has spiked regional energy risks.
- The SEC proposed "Regulation Crypto Assets," a new framework offering registration exemptions for offerings up to $75 million and a "safe harbor" for investment contracts.
- OpenAI has temporarily paused reinforcement learning (RL) scaling for its largest frontier models to strengthen security following a recent breach of research environments.
- Several independent U.S. oil producers are expected to sign production contracts with Venezuela’s PdVSA tonight in Houston to boost output toward a 1.245 million bpd target.
Mining and Commodities: Copper Becomes King at BHP
BHP (BHP), the world’s largest mining company, announced that copper has officially overtaken iron ore as its largest profit contributor. For the fiscal year ending June 30, 2026, the "red metal" generated $18.19 billion in operating earnings, fueled by record prices exceeding $14,000 per ton. The company reported an underlying attributable profit of $13.2 billion, beating analyst estimates and triggering a 4.2% rally in its share price.
The shift toward copper reflects a strategic pivot as global demand for the metal—essential for AI data centers and renewable energy—is projected to reach 50 million tons annually by 2050. CEO Brandon Craig highlighted a project pipeline intended to boost copper production by 40% by 2035. Meanwhile, the company declared its highest annual dividend in four years at $1.72 per share.
Geopolitical Volatility: Missile Strikes and Sabotage
Regional energy security is under renewed pressure following a ballistic missile attack by Iran targeting the United Arab Emirates. The UAE Defense Ministry confirmed that two missiles were intercepted and fell into the sea, specifically targeting maritime navigation in the Persian Gulf. This marks the first direct strike on the UAE since May and follows a series of attacks on ADNOC-linked vessels in the Strait of Hormuz.
In a separate incident, Syria's Petroleum Company reported a "deliberate act of sabotage" at the Al-Jabsah gas plant, causing an explosion that halted pumping through a major export pipeline. While no injuries were reported, the disruption adds to the fragility of Middle Eastern energy infrastructure. Brent crude futures settled slightly higher at $91.02/bbl as markets weighed these supply risks against a backdrop of ongoing regional conflict.
Regulatory and Tech: SEC Crypto Rules and OpenAI Safety
The U.S. Securities and Exchange Commission (SEC) has unveiled a landmark proposal titled "Regulation Crypto Assets." The framework aims to provide clear pathways for capital formation by offering two registration exemptions: a one-time exemption for offerings up to $5 million over four years, and a second for offerings up to $75 million per year. The rules also include a conditional safe harbor, allowing certain assets to exit the "investment contract" definition once managerial efforts have ceased.
In the artificial intelligence sector, OpenAI President Greg Brockman announced a temporary slowdown in the scaling of "frontier training." The pause, which affected the company's largest reinforcement learning (RL) runs, was implemented to harden research environments following a "watershed" security breach. Brockman emphasized that confidence in safety will increasingly dictate the pace of AI development as models gain superhuman coding and cyber capabilities.
Energy Policy: U.S.-Venezuela Oil Deals and Trade Reprieves
A significant shift in U.S. energy policy is underway as several independent oil producers prepare to sign production contracts with Venezuela’s PdVSA. A signing ceremony is scheduled for tonight in Houston, marking a major step in rebuilding Venezuela's oil industry. The country’s Central Bank reported 7.14% GDP growth in Q2 2026, and officials expect crude output to reach 1.245 million bpd by the end of August.
On the trade front, President Trump is reportedly weighing a tariff reprieve for Canada. This comes just hours before a planned 50% tariff on certain Canadian goods was set to take effect. Negotiators are racing to finalize an "early harvest" interim deal that could include concessions on dairy and automobiles, potentially averting a major trade war between the North American partners.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.