The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.

0940 ET - U.S. natural gas futures edge up in early trading with above normal temperatures likely to support power-sector demand into next week. Next week "may prove the last best chance for national cooling demand this summer before underlying normals begin to wane seasonally into late August," Eli Rubin of EBW Analytics says in a note. Commitment of traders data for the week ended July 28 showed an increase in speculator short positions. "The build-up to-date has yet to result in a substantial short-covering event," and while risks are increasing "there are few obvious near-term bullish catalysts on the horizon," Rubin adds. Nymex natural gas is up 0.8% at $2.769/mmBtu. (anthony.harrup@wsj.com)

0921 ET - CBOT grains are mostly lower premarket, with most-active corn futures down 0.5% and soybeans sliding 0.7%. Grains are taking a cue from the big dip seen in crude oil prices--down 6.7% to below $80 a barrel. "The focus remains on the war fronts and mostly on a more optimistic outlook for the Strait and Iran, with negotiations at least scheduled for this afternoon," says Matt Zeller of StoneX in a note. Grains and oil are connected via grain usage as a feedstock for renewable fuels. Wheat is higher premarket, with that most-active contract up 0.2%. (kirk.maltais@wsj.com)

0901 ET - Oil futures are sharply lower after the U.S. suspended planned strikes on Iran in favor of resuming talks. President Trump said at the weekend that "the perimeters of a deal" have been agreed to, including the total reopening of the Strait of Hormuz. Iran has yet to confirm that talks with the U.S. are set to restart, Peter Cardillo of Spartan Capital notes. "The current geopolitical rhetoric is exerting downward pressure on oil prices, which is beneficial for other markets. Nevertheless, oil prices could quickly reverse if talks do not resume," he says. WTI is down 6.3% at $79.31 a barrel and Brent is 5.3% lower at $83.25.(anthony.harrup@wsj.com)

0810 ET - Bitcoin and ether fall even as risk sentiment improves after President Trump said he called off an attack against Iran and said talks would begin Monday. "Cryptocurrencies have been left out of the general excitement, and now look at risk of tipping over into a fresh deep correction," IG analyst Chris Beauchamp says in a note. Cryptocurrencies stand or fall on momentum and sellers appear to be getting the upper hand, he says. Bitcoin falls 1.2% to $62,687, LSEG data show. Ether drops 2.1% to $1,842. (renae.dyer@wsj.com)

0809 ET - Investors lower their expectations of the Bank of England increasing interest rates in the coming months as oil prices fall due to easing tensions in the Middle East. The U.S. announced plans to hold talks with Iran on Monday, raising prospects of a potential resolution to the Middle East conflict and the possible reopening of the Strait of Hormuz. Markets currently price in a total of 26 basis points of BOE rate rises in 2026, down from 30 basis points priced in last week, LSEG data show. (miriam.mukuru@wsj.com)

0805 ET - Bahrain is likely to receive additional financial support from Gulf neighbors if the renewed closure of the Strait of Hormuz persists, Capital Economics says. The consultancy says Bahrain's foreign-exchange reserves fell to just over $2 billion in June from $6 billion in March, leaving policymakers with limited room to defend the dollar peg or support the balance of payments. While a prolonged Hormuz closure would raise the risk of devaluation and sovereign default, Saudi Arabia or the UAE would probably step in to prevent broader concerns over Gulf dollar pegs, the consultancy says. (farhan.rafid@wsj.com)

0729 ET - Saudi Arabia's economy is becoming more dependent on government spending as the Iran war weakens private-sector momentum, EFG Hermes says. Public consumption rose 11% and public investment surged 52% in real terms in the first quarter, while non-oil private investment contracted 1.4% and overall fixed investment fell 7.6%. The investment bank forecasts the economy will contract by 1% in 2026, with oil GDP shrinking around 11% and non-oil growth slowing to 2%, as conflict-related uncertainty weighs on investment, hiring and exports. (farhan.rafid@wsj.com)

0722 ET - Saudi Arabia's temporary oil windfall is unlikely to eliminate mounting fiscal pressures, increasing the need for another round of spending reprioritization, EFG Hermes says. The investment bank forecasts government expenditure will reach SAR1.5 trillion ($400 billion) in 2026, about 14% above budget, while the fiscal deficit narrows only marginally to 5.6% of GDP, versus the government's 2.3% target. The Iran war has raised spending requirements in areas including food security and critical infrastructure and could also make the foreign private capital needed to fund investment harder to attract, the firm says. (farhan.rafid@wsj.com)

0544 ET - While production and new orders rose in July, U.K. manufacturers are starting to feel the strain of higher energy prices, Matt Swannell at the ITEM Club says in a note. The manufacturing PMI fell to 51.9 in the month, from 52.5 in June. "We think the breakdown of the U.S.-Iran ceasefire early in the month and the uncertainty surrounding the future of the conflict has been a key drag on manufacturers' optimism," he says. Higher energy costs will likely weigh on the sector in the second half, despite output price inflation easing to a four-month low in July. "Just as with the wider economy, we anticipate that this relief will be temporary," he says. (don.forbes@wsj.com)

0543 ET - The U.K. manufacturing sector remained on a solid footing in July, analysts at RSM UK says in a note. The manufacturing PMI fell to 51.9, from 52.5 in June, but signaled continued expansion as it remained above 50. Stronger new orders suggest the recovery extends beyond stockpiling ahead of the Iran war, the analysts say. "The manufacturing sector has grown roughly twice as fast as the rest of the economy since last summer." Meanwhile lower input-cost inflation has eased pressure on manufacturers, although renewed energy-price rises could weigh on growth ahead. Activity should expand further, supported by AI investment and rising global defense spending, alongside plans for reindustrialization and regional growth from Prime Minister Andy Burnham, they say. (don.forbes@wsj.com)

0543 ET - U.K. short-dated government bonds, or gilts, are more favorable than their long-dated peers due to inflation concerns, RBC BlueBay Asset Management's Mark Dowding says in a note. Short-term yields look attractive given that BOE interest rates remain restrictive, reducing the possibility of a rate increase in the near term, Dowding says. Still, the risk of higher U.K. inflation from elevated energy costs and fiscal pressures could weigh on long-dated gilts, he says. Ten-year gilt yields fall 6.6 basis points to last trade at 4.971%, Tradeweb data show. U.K. 30-year gilt yields drop 6bps to 5.702%. (miriam.mukuru@wsj.com)

0541 ET - U.S. Treasury yields and the dollar fall in European trade. President Trump's decision to resume diplomatic talks with Iran causes oil prices to drop, lowering yields as inflation worries ease. The dollar falls on reduced demand for safe-haven assets, and also following U.S.-Japanese coordinated currency intervention to firm the yen. "The prospect of renewed coordinated action could cap any recovery in the greenback [dollar] against the yen," said Exness' Dat Tong.The 10-year Treasury yield declines 5.7 basis points to 4.687%, according to Tradeweb. The DXY dollar index falls 0.1% to 99.823.