US-Iran military hostilities escalated sharply in late July and early August 2026, with Iran launching ballistic missiles at American military installations in Jordan on July 28 and drone strikes on US facilities in Kuwait and Bahrain on July 31 [Brief - 2026-07-31]. The conflict disrupted energy markets and shipping routes, with tanker strikes reported near the Strait of Hormuz and central banks responding to elevated volatility [Brief - 2026-08-02]. Yemen's Houthi movement had separately declared a maritime blockade on Saudi Arabia on July 20, adding pressure to crude export flows through the Red Sea [Brief - 2026-07-27]. These developments formed the backdrop against which Chevron reported its second-quarter 2026 results.
ExxonMobil and Chevron together reported Q2 2026 combined profits exceeding $26 billion, a combined increase of more than 300% compared with the prior-year period, attributed to elevated crude oil prices during the quarter [Brief - 2026-08-02]. Chevron's trailing-twelve-month revenue as of March 31, 2026 stood at $185.9 billion, representing 3.2% year-over-year growth. Net income TTM was $11.0 billion, yielding a net margin of 5.9%. EPS declined 44.5% year-over-year on a TTM basis, and the P/E ratio stood at 33.66. Cash on hand was $6.3 billion against total debt of $31.5 billion [SEC 10-Q - CVX - 2026-03-31].
Institutional ownership saw material shifts in the most recent 13F reporting period. Berkshire Hathaway reduced its CVX position by 35% [SEC 13F - Berkshire - Q2 2026], while Citadel added 38% to its position [SEC 13F - Citadel - Q2 2026]. Millennium Management increased its holdings by 13% [SEC 13F - Millennium - Q2 2026], AQR Capital added 19% [SEC 13F - AQR Capital - Q2 2026], and Bridgewater Associates opened a new position in CVX [SEC 13F - Bridgewater - Q2 2026]. These changes represent a divergence in positioning among major institutional filers, with reductions from one prominent long-term holder offset by additions and new entries from several quantitative and macro-oriented firms.
The 10-year US Treasury yield stood at 4.75% and the 2-year at 4.28% as of the report date, producing a normal yield curve spread of 47 basis points [FRED DGS10] [FRED DGS2]. The broader macro environment during the reporting period was characterised by the Federal Reserve holding rates steady amid elevated geopolitical risk, with Treasury yields reaching multi-year highs following the escalation of US-Iran hostilities [Brief - 2026-07-31]. This report was generated in response to material institutional position changes identified across multiple 13F filers for the Q2 2026 reporting period.