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

0545 GMT - Oil price developments have become a key driver of U.S. Treasury yields and market expectations for the Federal Reserve's rate path, DHF Capital S.A.'s Bas Kooijman says in a note. "The outlook could shift depending on how developments in the Middle East and oil prices evolve," he says. A deeper and sustained decline in oil could reinforce disinflationary pressures and curb monetary policy tightening expectations, while renewed escalation could revive inflation concerns and drive Treasury yields higher, he says. (emese.bartha@wsj.com)

0541 GMT - The Federal Reserve is widely expected to hold the Fed funds rate, but "the bigger story will be the Fed's messaging," Generali Investments' Paolo Zanghieri says in a note. The senior economist expects policymakers to maintain--or even strengthen-a hawkish tone as persistent inflation, rising oil prices and divisions within the FOMC keep the door open to further tightening later this year. "This aligns with Generali's broader outlook that sticky inflation will keep central banks cautious even as headline inflation eases," Zanghieri says. The economist adds that markets will focus less on the rate decision itself and more on any signals regarding the September meeting and the balance between inflation risks and economic growth.