Shell reported record second-quarter profits, its strongest quarterly performance in four years. Earnings more than doubled as oil and gas prices rose following the US-Iran war and the closure of the Strait of Hormuz. The company maintained operations whilst repairing damage at its Qatari gas-to-liquids facility and advancing a North Sea gas project. Shell is awaiting regulatory approval for a major acquisition of ARC Resources that could reshape its portfolio. Net income reached $10.8 billion for the quarter. The company declared a dividend of $0.39 per share and continued share buybacks. Shell shares closed at £33.19, up 20.3% year-to-date and 27.2% over the past year. New production guidance for Q3 2026 excludes ARC and Qatar volumes whilst factoring in higher maintenance costs.

ARC Resources reported second quarter 2026 results on 30 July, with average production of 390,465 barrels of oil equivalent per day, a 9% increase compared to the same quarter in 2025. The Canadian energy company generated funds from operations of $816 million and free funds flow of $349 million. The announcement comes as ARC shareholders overwhelmingly approved Shell's proposed acquisition of the company on 14 July. The $22 billion cash and share transaction, including assumed net debt, is expected to close in the third quarter of 2026. Several regulatory approvals have been obtained, including under the Competition Act and Hart-Scott-Rodino Antitrust Improvements Act. ARC's capital expenditures totalled $467 million during the quarter, with its 2026 capital budget of $1.8 billion to $1.9 billion unchanged.

European stocks traded in a narrow range on Thursday as strong corporate earnings offset concerns over US monetary policy and escalating US-Iran tensions. The pan-European STOXX 600 hovered near flat, whilst Germany's DAX slipped 0.2% and France's CAC 40 gained 0.6%. Shell provided an early boost, more than doubling its second-quarter adjusted profit to $9.8 billion, beating market expectations. Société Générale rose 2% after reporting a record quarterly profit, whilst Spain's BBVA gained 2.6% following increased second-quarter net profit. Schneider Electric jumped 7.3% after raising full-year guidance on strong energy infrastructure demand. However, sentiment remained constrained after the Federal Reserve left interest rates unchanged but delivered an unclear monetary policy outlook. Fresh US military strikes inside Iran further escalated geopolitical tensions, keeping global energy markets under scrutiny.