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

0826 ET - Oil futures extend losses to a third session as the U.S. and Iran continue a pause in their attacks while Iran and Oman explore ways to reopen the Strait of Hormuz. The prospect of a diplomatic off-ramp could keep crude under pressure, although risk premium could be quickly reignited and push prices back above $100, says Nikos Tzabouras of Tradu. "The Middle East conflict has in fact widened," he says, with Houthis attacking Saudi facilities and shipping in the Red Sea. "Any sustained disruption there could leave a market already running on low inventories with limited room to respond." WTI is down 1.3% at $81.55 a barrel and Brent is down 1.6% at $86.96. (anthony.harrup@wsj.com)

0724 ET - Market pricing of around 1.5 interest-rate hikes by the European Central Bank this year might be excessive, providing some cushion to German government bonds in case of renewed oil price rises, Metzler analysts say in a note. One-and-a-half rate raises would mean interest rates would rise by 37 basis points, according to LSEG. Metzler expects fewer interest-rate hikes than that. "We see support for the entire curve stemming from monetary policy with the greatest impact, naturally, at the short end," analysts Leon Ferdinand Bost and Yannik Mosbach say. Short-term yields have somewhat decoupled from the oil price and consequently Metzler sees a certain "margin of safety" against rising Brent prices, they say. The ECB raised interest rates in June and left them on hold in July. (emese.bartha@wsj.com)

0704 ET - Saipem's margin visibility is being hampered by costs linked to the U.S.-Iran war, Equita analyst Massimo Bonisoli writes. In second-quarter results posted Tuesday, the Italian engineering contractor cut its guidance for 2026 adjusted earnings before interest, tax, depreciation and amortization from 1.9 billion euros to around 1.75 billion euros. Costs incurred in the Middle East, where Saipem builds and operates offshore oil and gas facilities, contribute to the guidance cut, the analyst writes. The company's expectations for performance in the second half of the year look modest, Bonisoli says. Saipem shares fall 8.3%, dragging on Luxembourgish peer Subsea 7, which falls 7%. (josephmichael.stonor@wsj.com)

0654 ET - Kuehne + Nagel is delivering the benefits of artificial intelligence, but shares trade at an elevated level, Deutsche Bank analyst Harishankar Ramamoorthy writes. The company's second-quarter EBIT beat consensus by around 8% and full-year guidance was upgraded. Management also highlighted 100 million-150 million Swiss francs of AI-driven productivity benefits by the end of 2027. However, markets treated this as slightly underwhelming, given the AI benefits are gross, not net of costs, and it was unclear how costs could evolve in the future, the bank says. Management also mentioned the benefits could be passed on to clients to gain market share. Deutsche Bank lifts its target price for the stock to 196 francs from 183 francs and reiterates its hold rating. Shares rise 0.5% to 202.70 francs. (dominic.chopping@wsj.com)

0639 ET - German economic output rose somewhat in the second quarter despite headwinds from the war in Iran, the Bundesbank says in its July monthly report. "The current picture painted by the indicators suggests a somewhat higher underlying pace of economic growth than was expected in the Bundesbank's June forecast," it says. Continued resilience in the industrial sector, helped by robust foreign demand and growing exports helped GDP to increase slightly in the quarter, the bank says. German exporters also benefited as international competitors were more severely affected by supply bottlenecks. Consumers were relatively unaffected by the high energy prices, and have kept their consumer spending at least stable, it notes. German 2Q GDP data are due Thursday. (edward.frankl@wsj.com)

0635 ET - U.S. Treasury yields fall as oil prices drop and investors hope for a diplomatic solution in the Middle East. The dollar rises to a one-month high against a basket of currencies before Wednesday's Federal Reserve's rate decision and on safe-haven demand as a tech-stock selloff deepens. The Fed is expected to hold interest rates but could stress inflationary risks from high energy prices, while a hike isn't out of the question. "The Fed will have no choice but to strike a hawkish note on Wednesday," Ebury's Matthew Ryan says in a note. Money markets price a 34% probability of a Fed rate hike, according to LSEG. The 10-year Treasury yield falls 1.9 basis points to 4.622%, according to Tradeweb. The DXY dollar index hits a high of 101.640. (emese.bartha@wsj.com)

0627 ET - The cost of insuring euro-denominated credit against default declines as U.S. and Iran pause hostilities. Markets hope for a resolution to the conflict and the reopening of the Strait of Hormuz. "Oil's sharp drop after the U.S. paused military strikes against Iran suggests investors are becoming more confident that diplomacy can prevent a prolonged disruption to global energy supplies," eToro's Lale Akoner says in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps falls 1 basis point to 260bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0618 ET - Palm oil ended lower, tracking weakness in crude oil, says Abdul Hameed, director of sales at Pakistan-based Manzoor Trading. A lull in fighting between the U.S. and Iran has accelerated diplomacy aimed at a short-term fix for the most contentious issue of the war, he says. Hameed believes this correction will be limited due to strong underlying palm oil fundamentals. The Bursa Malaysia Derivatives contract for October delivery falls 30 ringgit to 4,643 ringgit a ton. (tracy.qu@wsj.com)

0454 ET - Investors lower their expectations of the Bank of England raising interest rates in the coming months as oil prices retreat. The price of Brent crude oil falls 3.6% to $85.17 as negotiations aimed at resolving the Middle East conflict resume, easing market concerns about high energy prices pushing up inflation. Markets currently price in a total of 35 basis points of BOE rate increases in 2026, 12 basis points down from last week's pricing, LSEG data show. (miriam.mukuru@wsj.com)

0329 ET - Yields on U.K. government bonds, or gilts, fall as oil prices decline amid prospects of a U.S.-Iran ceasefire deal. The two nations paused attacks over the weekend, creating room for negotiations to allow the safe passage of ships through the Strait of Hormuz. Investors are cautiously optimistic about a potential ceasefire agreement while lower oil prices reduce expectations of Bank of England interest-rate rises in the coming months. Ten-year gilt yields fall 3.6 basis points to last trade at 4.951%, Tradeweb data show. (miriam.mukuru@wsj.com)

0309 ET - Bitcoin falls as a selloff in chip stocks and concerns about the U.S.-Iran conflict dampen risk appetite. Chip stocks in the U.S. and Asia slumped amid growing concerns over artificial-intelligence spending. President Trump told Axios Monday that he paused strikes on Iran to allow for negotiations but could return to expanded military action if talks fail. Investors are also looking ahead to the Federal Reserve's policy decision on Wednesday where money markets price a 64% chance that interest rates will be held steady and a 36% chance of a 25 basis-point rate rise, according to LSEG. Bitcoin drops 2.1% to $63,508, LSEG data show. (renae.dyer@wsj.com)

0259 ET - Delta Electronics (Thailand)'s margins may widen gradually, but cost pressures could stay high, CGS International's Thanapol Jiratanakij says in a research report. The electronics products manufacturer expects gross margin to improve sequentially from 3Q as inventory provisions fall and production normalizes, the analyst notes. Also, management expects the company's internally developed products to account for a larger share of revenue in 2H, which should improve the sales mix. However, raw material costs linked to products such as printed circuit boards remain elevated. The brokerage cuts its 2026-2028 core EPS forecasts for the company by 1.7%-15.5%. It lowers the stock's target price to 245.00 baht from 253.00 baht, with an unchanged reduce rating. Shares last closed at 285.00 baht.