Saudi Aramco, the world's top oil exporter, announced that its net profit for the third quarter of 2026 rose by more than a third compared to the same period last year. The company posted a net profit of $3.25 billion in the three months leading up to September, a figure that contrasts with the $26.9 billion reported a year earlier. This financial performance occurred despite ongoing attacks on its facilities and a reduction in output linked to the US-Israeli war on Iran, which began on February 28. The decline in production was offset by higher global oil prices driven by geopolitical uncertainty.
Brent crude prices climbed $2.38 per barrel to reach $107.15 following reports of limited US strikes on Iran's Qeshm Island. This represents a significant increase from the pre-war trading level of approximately $72 per barrel, although the benchmark had previously plunged 11% to $103.28 after comments from Donald Trump regarding diplomatic efforts. Amin H. Nasser, Aramco's president and chief executive, stated that while attacks amplified the global energy supply crisis, the company's operational excellence and robust supply network allowed it to continue delivering reliably. He noted that the firm is exploring additional overseas storage capacity and alternative export routes to further strengthen its global network.
The resilience of major oil companies suggests they are on track for combined profits of around $100 billion between July and September. In parallel developments, the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85%, marking the fifth increase this year and reaching the highest level in 18 years. The central bank's board indicated it would continue taking necessary measures to bring inflation to target but dropped previous guidance suggesting further hikes were inevitable. A narrow 6-3 vote on the decision signaled that policymakers may be nearing the end of their tightening cycle.
Governor Michele Bullock acknowledged that the rate hike was unwelcome news for many Australians but argued it would prevent worse economic pain in the future. She highlighted that while three dissenting members pointed to downside risks like a weakening housing market and rising unemployment, inflation risks still skewed to the upside. Updated forecasts predict headline inflation will hit 4.5% in the fourth quarter before easing to the 2% to 3% target range in the second half of next year, with unemployment expected to rise above 5% over the coming years.
Analysts suggest that higher energy prices strengthen the case for further monetary tightening by major central banks, including the Federal Reserve and the Bank of England. Meanwhile, cryptocurrency exchange Binance reported that hourly deposits exceeded withdrawals, indicating stabilizing flows after a hack last week that resulted in $6.3 billion being stolen from customer accounts. Experts have identified North Korea as the probable culprit behind what is described as the biggest heist in history.
Sources: The Guardian Business.