Occidental Petroleum reported net income of $2.8 billion for the second quarter of 2026, up from $288 million a year earlier. Adjusted income rose to $2.4 billion, or $2.40 per diluted share, from $296 million, or $0.26 per share, in the same period of 2025. The improvement was driven by higher crude prices and a turnaround in midstream operations. Occidental's average worldwide realized crude price increased 38% sequentially to $96.78 per barrel. The midstream segment generated $1.3 billion in pre-tax income, reversing a $87 million loss in the previous quarter. Global production averaged 1.433 million barrels of oil equivalent per day, above guidance. Occidental reduced principal debt by $1.9 billion to $11.8 billion and raised its quarterly dividend 8% to $0.28 per share.

US President Donald Trump announced negotiations with Iran would begin Monday, focusing on reopening the Strait of Hormuz and the country's nuclear programme. The news sent crude oil prices tumbling, with Brent futures down 4.6% to $83.88 per barrel and WTI futures falling 4.5% to $77.80. The United States Oil Fund dropped more than 6% in premarket trading. Energy stocks also declined, with Chevron falling 1.2% and Exxon Mobil slipping 1.6%. Occidental Petroleum lost 1.5%, whilst Devon Energy and APA Corp dropped 2.6% and 2.8% respectively. Separately, Barclays raised its price target on Chevron to $216 from $213, citing record Permian production and stronger refining margins following the company's second-quarter results.

US stock futures rebounded Monday morning, with the Nasdaq leading gains at 0.7%, whilst the S&P 500 and Dow rose 0.35% and 0.3% respectively. Investors sought to recover from Friday's losses, when the Nasdaq fell 1.4%, marking its biggest weekly decline in four weeks. Lockheed Martin shares climbed in premarket trading after unveiling two new defence systems to counter drones and missiles. The company said the systems would provide more affordable and rapidly deployable solutions. Oil stocks Occidental, Exxon, and Chevron gained as crude prices remained elevated amid US-Iran tensions. Brent crude traded at $82.5 per barrel. GameStop converted its eBay investment into direct ownership, acquiring a 9.8% stake valued at nearly $4.9 billion through 43.39 million shares.