Oil prices dropped after the U.S. and Iran reached an interim deal, marking the first major step toward ending a nearly four-month conflict that has roiled global energy markets. However, uncertainty over the pace of recovery is expected to keep crude above prewar levels.

In midmorning European trade on Monday, Brent crude fell 4.9% to $83.07 a barrel, while West Texas Intermediate futures were down 5.3% to $80.38 a barrel after sliding to $79.70 earlier. Natural-gas prices also tumbled, with the front-month Dutch TTF contract—the European benchmark—down 5.3% to 44.30 euros a megawatt hour.

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SYDNEY — BHP Group Ltd shares rose sharply on Monday, closing at $65.18 after gaining 2.25 or 3.58%, as strong copper prices and broader commodity sector optimism lifted the mining giant amid a favorable global risk environment.

The advance extended recent gains for Australia’s largest listed company by market capitalization, reflecting investor confidence in BHP’s diversified portfolio and exposure to metals critical for the energy transition. Copper’s sustained strength has been a key driver, with the red metal benefiting from robust demand in electric vehicles, renewable energy infrastructure and data centers.

BHP has significantly expanded its copper production profile in recent years through acquisitions and organic growth, positioning the company to capitalize on structural supply deficits expected in the coming decade. Iron ore operations continue to provide stable cash flow, while emerging potash projects add further diversification.

Commodity Tailwinds Support Performance

Copper prices have remained elevated, trading near record levels due to supply constraints and accelerating green energy demand. BHP’s copper assets, including operations in Chile and Australia, have delivered strong margins, helping offset any softness in other commodities.

Iron ore prices have shown resilience despite Chinese economic headwinds, supported by steel production needs and limited new supply. Analysts note that BHP’s low-cost, high-quality assets provide a competitive edge in both copper and iron ore markets.

The stock’s movement aligned with a broader rally in mining and resources shares on the ASX, as easing geopolitical concerns and positive global manufacturing data boosted sentiment toward cyclical commodities.

Financial Strength and Strategic Positioning

BHP has maintained robust financial metrics, with strong free cash flow generation supporting dividends, share buybacks and growth investments. The company’s disciplined capital allocation has earned praise from investors seeking both yield and exposure to long-term commodity supercycles.

Recent operational updates highlight progress on key projects, including the Jansen potash development in Canada, which is expected to become a major earnings contributor in the future. This diversification reduces reliance on traditional iron ore and copper revenues while aligning with global food security and agricultural trends.

Technology investments, including automation and artificial intelligence applications across mining operations, are enhancing efficiency and safety. These initiatives position BHP to lower costs and improve sustainability metrics, appealing to environmentally conscious investors and regulators.

Market and Economic Context

Australia’s resources sector remains a cornerstone of the national economy, with BHP serving as a bellwether for commodity cycles. Monday’s share price increase contributed to gains in the broader ASX 200, which benefited from improved global sentiment following positive developments in international relations.

Analysts remain generally positive on BHP’s outlook, citing copper’s favorable supply-demand dynamics. While near-term volatility tied to Chinese economic data and global growth concerns persists, the long-term thesis for metals essential to decarbonization remains intact.

Valuation metrics show BHP trading at levels that balance growth potential with current earnings strength. Dividend yields continue to attract income investors, with the company maintaining a track record of returning capital to shareholders through both dividends and buybacks.

Challenges and Risks

Like other miners, BHP faces operational risks including commodity price fluctuations, regulatory changes, geopolitical tensions affecting trade routes, and rising costs related to labor, energy and environmental compliance. Climate transition pressures require ongoing capital expenditure to reduce emissions while maintaining production.

Competition in the copper space is intensifying, with new projects and expansions by peers potentially impacting market dynamics. BHP’s scale and expertise provide advantages, but execution on major developments remains critical.

Analyst Views and Investor Considerations

Wall Street and local analysts largely view BHP as a core holding for resources exposure. Consensus targets suggest room for further upside, though some caution that current prices already reflect optimistic copper assumptions. Investors are advised to monitor quarterly production reports, commodity price trends and any updates on major projects.

For long-term holders, BHP offers exposure to essential materials for modern economies while delivering shareholder returns through cycles. Diversification across assets and geographies helps mitigate single-commodity risks.

Company Background and Future Outlook

Founded in the 19th century, BHP has evolved into a global resources leader with operations spanning Australia, the Americas and beyond. The company’s portfolio includes iron ore, copper, nickel, coal and potash, serving steel, renewable energy, electronics and agricultural markets.

Looking ahead, BHP is expected to continue focusing on tier-one assets, operational excellence and responsible development. The energy transition and population growth trends support sustained demand for its products, while technological advancements should drive efficiency gains.

As the company navigates evolving stakeholder expectations around environmental, social and governance factors, transparent reporting and community engagement will remain priorities.

Monday’s solid performance underscores BHP’s resilience and appeal in a recovering market environment. While commodity prices will continue to drive short-term movements, the company’s strategic positioning and financial discipline provide a strong foundation for sustained value creation.

Investors will closely watch upcoming economic indicators from China and global manufacturing data for further direction on commodity demand. For now, BHP’s upward move reflects confidence in its ability to deliver through commodity cycles and contribute meaningfully to the global energy transition.

Huntspill River serves Gravity enterprise zone

A major flood relief channel in Somerset could be improved in the coming years to increase the amount of water which can be moved off the Levels and Moors during a flood event.

The Huntspill River was constructed in 1940 to provide water for the Royal Ordnance Factory east of Bridgwater – land which is now the site of a new ‘gigafactory’ within the Gravity enterprise zone.

The channel has been a vital component of Somerset’s flood defences since its inception, providing an alternative means for water within the River Brue catchment to reach the Bristol Channel.

The Somerset Rivers Authority (SRA) has now hinted that the channel could be de-silted in the coming years, allowing more water to be stored downstream of the Levels and Moors following heavy rain.

The Huntspill River is currently fed by two different parts of the River Brue catchment: the South Drain (which runs west of Glastonbury through the Avalon Marshes) and the Cripps River (which carries water south of the main river channel near East Huntspill).

Water from both channels moves through the Gold Corner pumping station and flows north of the Gravity site, under the M5 north of junction 23, under the A38 near West Huntspill and exits into the River Parrett before it joins the Bristol Channel.

The River Brue steering group, set up by the SRA, assessed numerous proposals to improve flood prevention within the River Brue catchment area, in order to determine where money would be best spent to protect residents, businesses, farmland and major transport links.

These proposals range from major projects like lowering the Huntspill River and expanding the Highbridge Clyse (which stops tidal water from the Bristol Channel flowing up the Brue) to more low-level interventions, such as raising low points on the existing river banks.

Following a comprehensive modelling of the entire catchment, the group concluded that three actions would deliver the greatest benefit:

• Formalise “pre-lowering procedures” for the Huntspill River (i.e. reducing the amount of water in it before “significant rainfall events”, so that more water can flow into it off the Levels)
• Address low spots in the existing River Brue bank
• Commission a study into “pinch points” which prevent water from moving at an adequate pace downstream of the Cripps River

A spokesperson for the SRA said: “Work on the Huntspill River will involve lowering of the retained water prior to a flood event.

“There may be difficulties with this due to siltation within the channel and environmental constraints, but it provides significant additional benefit, especially to the pumped catchments and the area around Decoy Rhyne.

“It will lead to a reduction in pumping at Gold Corner, yet much increased discharge from the Huntspill River; with this lower level, water can enter the Huntspill River via gravity without pumping.”

The SRA believes that improvements to the Huntspill River could cost around £1m to implement, on top of £290,000 for bank improvements elsewhere in the Brue catchment.

SRA chairman Mike Stanton said: “We know what needs to be done where, but we need the Environment Agency and the drainage boards to find the funding to do this – which may include applying to the SRA.”

Vice-chairman Tony Bradford said he hoped there would finally be tangible progress on improving the River Brue after what he characterised as a decade of inertia.

He said: “This has been going on for ten years. The question I keep getting asked from people who are affected by the Brue area is: ‘when are we going to see something happen on the ground?’

“All they want is some action. There’s been a lot of action on the River Parrett, and it’s about time that the people living in the Brue catchment saw something happen.”

Iain Sturdy, chief executive of the Somerset Drainage Board Consortium, responded: “I understand the frustration with everybody around the time it’s taken, but these are positive steps.

“The model unquestionably shows that these actions, and other actions, have enormous impacts on the extent, the depths and the durations. The question is whether they generate sufficient benefits.

“There is no question that improving the condition of the Huntspill River provides flood risk benefit. It’s just whether the current modes of funding allow that; if not, we need to look carefully at other ways of doing things.”

A further update will be provided to the SRA board at its next meeting, which is due to take place on September 11.

To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your community, visit the Public Notices Portal.

Shares of Maruti Suzuki rallied as much as 4% to their day’s high of Rs 13,959 on the BSE on Monday after Union Minister for Road Transport and Highways Nitin Gadkari approved legal recognition for 100% ethanol blend fuel (E100), a move that could accelerate the adoption of flex-fuel vehicles and reduce India’s dependence on imported fossil fuels.

Speaking about India’s reliance on fuel imports, Gadkari said ethanol would emerge as a “viable alternative to petrol” and help lower the country’s import burden, which currently stands at around Rs 22 lakh crore.

The approval marks a significant step beyond India’s E20 programme, which focuses on blending ethanol with petrol. By creating a framework for E100 fuel, the government has opened the door for vehicles capable of running on ethanol as a primary fuel source, alongside electric, CNG and hybrid-powered alternatives.

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Why is Maruti a direct beneficiary?

The development comes just days after Maruti Suzuki unveiled what it called India’s first flex-fuel passenger vehicle, positioning the technology as a crucial component of the country’s strategy to cut crude oil imports, strengthen energy security and lower carbon emissions.At the launch event, Managing Director and CEO Hisashi Takeuchi described the flex-fuel Wagon R as more than just a new vehicle launch, saying it marked “a new chapter in India’s energy journey.”

Drawing attention to India’s dependence on imported crude oil, Takeuchi said the country requires energy solutions that are “cleaner, affordable, scalable, and based on India’s own strengths.”
Maruti said the flex-fuel vehicle forms part of its broader multi-pathway strategy to reduce emissions through a combination of technologies, including electric vehicles, strong hybrids, compressed natural gas (CNG), compressed biogas (CBG) and hydrogen.
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What is the flex fuel hype?

For consumers, flex-fuel vehicles offer a practical alternative to conventional petrol cars without requiring a major change in driving habits.
These vehicles are equipped with specialised engines capable of automatically adjusting to different blends of petrol and alcohol. While most vehicles currently on Indian roads are compatible with fuel blends of up to E20, Maruti’s newly launched Wagon R has been engineered to operate on anything from standard petrol to E100, or pure ethanol.

The flex-fuel ecosystem is also expected to expand rapidly after E85, a fuel blend containing up to 85% ethanol, was identified as the mono-fuel standard under Bureau of Indian Standards specifications.

To support adoption, the government plans to roll out around 50-100 ethanol dispensing stations across the Delhi-NCR and Mumbai-Pune-Nagpur corridors in the initial phase, with the network expected to expand to 500 stations by December this year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The shares of Rajesh Exports took a breather after an incessant fall, rising 5% to hit the upper circuit on Monday after Sebi’s interim order over alleged Rs 15.15 lakh crore revenue inflation sparked a 30% crash in the stock over seven consecutive sessions.

The shares of the company jumped to Rs 80.23 apiece on the NSE amid the overall market uptrend. The stock has overall tumbled 55% in 2026 so far and 87% in three years, with its market capitalisation coming down to Rs 2,369 crore.

Sebi’s interim order against Rajesh Exports

Sebi, in its interim order released earlier this month, claimed that its investigation and forensic review had uncovered prima facie evidence suggesting that about 97-99% of the company’s revenue may have been inflated, describing the findings as “egregious and unheard of.”

The market regulator restrained promoter Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders, and also directed the company to cooperate fully with investigators. This came after a shareholder complaint received in March 2024.

Also read: Canara Bank recovers over half of ₹500 crore Rajesh Exports exposure, CEO outlines growth strategy

Rajesh Exports blames ‘communication gap and confusion’

Rajesh Exports, in an exchange filing, clarified that the order is interim and no adverse conclusion has been made by Sebi yet. It said that the revenues declared by the company are correct, and no overstating of earnings has been done. “There seems to be some type of communication gap and confusion between Sebi and the company,” Rajesh Exports said.The company further said that it is confident that Sebi, in its wisdom, will clarify the situation and arrive at the correct conclusion, based on the authenticated documents which are in the process of submission by the company.

“The core observation in the order is concerning the misreporting of the revenues. This has emerged primarily due to confusion because SEBI has considered the Ebitda of Valcambi instead of Revenue; hence, it has stated that there is a difference of about 97% in the revenue. The consolidated Revenue as stated by the Company is correct,” Rajesh Exports said in another exchange filing.

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Promoter Rajesh Mehta denies allegations

In an interview with PTI, the company’s founder and chairman, Rajesh Mehta, denied allegations that Rajesh Exports had impeded the audit process and said the company had been forthcoming with investigators throughout.
“I would never agree to the fact that certain relevant documents have not been submitted by us. We have submitted everything we were asked for. Sebi has not found anything; maybe we have missed out on something. All that will be reconciled now,” Mehta said.On whether the company plans to legally contest Sebi’s directions, Mehta said there was no reason to do so. “Sebi has all the authority and right to keep asking us for documents for any number of years. There is no fine, no penalty, no coercive action in this order. Why should we challenge it?” he said.

Also read: Why is the stock market rising today?

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)