The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0840 GMT - Shares in European banks and insurers traded sharply lower at market open on Monday, as investors weighed the fallout from an escalation in the Middle East. Markets were rattled by the prospect of a surge in specialty war-risk claims, potential damage to regional energy infrastructure and disruptions to global supply chains. Following weekend strikes by U.S. and Israeli forces on Iran and subsequent retaliatory actions, the STOXX Europe 600 Insurance subindex fell around 2.5%, while the banking subindex dropped nearly 4%. Both sectors significantly underperformed the wider STOXX 600, which declined 1.9% as fears of heightened credit risk and an oil-driven inflationary shock weighed on sentiment. (elena.vardon@wsj.com)

0831 GMT - The Petronas-Petros impasse is expected to persist for the foreseeable future, prompting Petronas to stay cautious on its Sarawak upstream capital spending in the near term, Kenanga IB analyst Lim Sin Kiat says in a note. Although Petronas has set a 60 billion ringgit annual capital expenditure target for 2023-2027, 2025 spending came in lower at 41.6 billion ringgit. He says the shortfall is largely attributed to the gridlock over Petronas-Petros gas distribution rights, as well as weaker crude oil and gas prices. For 2026, capex is guided at up to 50 billion ringgit, with several domestic upstream projects in early stages, laying the groundwork for higher development spending in coming years, he adds. Kenanga maintains a neutral rating on Malaysia's oil-and-gas sector, pegging Dialog as its top pick given its defensive earnings profile. (yingxian.wong@wsj.com)

0828 GMT - Europe's blue-chip indexes fall sharply at the open as conflict in the Middle East rocks markets. Airlines, banks and consumer-sensitive stocks fall sharply. Spanish and Italian indexes--which are weighted toward banks--are down most steeply, with the IBEX 35 down 3% in Madrid while the FTSE MIB falls 2.4%. Santander falls 4.15% in Spain, while International Consolidated Airlines Group falls 7.3%. The CAC 40 falls 2% as luxuries bellwether LVMH drops 4%. Banks and industrial stocks drag the German DAX down 2.4%. The Dutch AEX falls 1.2%, as ASML drops 3.4%. Energy and defense stocks gain significantly, however. The U.K.'s FTSE 100 drops 0.9%, though BAE Systems climbs 7.6% and oil supermajor Shell jumps 5%.(josephmichael.stonor@wsj.com)

0757 GMT - Weichai Power is jockeying to be a power-generation leader for artificial-intelligence data centers, Daiwa analyst Kelvin Lau says in a research note. Weichai supplies high-density, reliable power solutions including diesel and natural gas generator sets for AI data centers. Weichai's Baudouin unit is collaborating with Generac, a U.S.-based diesel generator set maker, to sell diesel backup generators in the U.S. Daiwa says Generac's capacity ramp-up plan could benefit Weichai with over 1 billion yuan of potential earnings upside by 2026. Weichai's net profit exposure to the AI data-center business could reach 20% by 2027, Lau notes. Daiwa raises Weichai's target price to HK$40.00 from HK$24.00. Shares are last at HK$32.44. (sherry.qin@wsj.com)

0333 GMT - Malaysia's benchmark Kuala Lumpur Composite Index may face limited downside despite escalating U.S.-Israeli strikes on Iran, as local equities have historically proved more resilient than regional peers during geopolitical shocks, Kenanga IB analyst Peter Kong says. Based on past data, the KLCI could fall about 6% to around 1610 as a potential floor, though that level appears unlikely, he adds. Investors may rotate into value sectors such as utilities, banks and telecommunications, while oil and gas stocks could gain on firmer crude, he adds. Kenanga prefers AMMB, Tenaga Nasional and TIME dotCom. The KLCI is 1.0% lower at 1698.68. (yingxian.wong@wsj.com)

0257 GMT - A temporary surge in oil prices following U.S. and Israeli strikes on Iran could shave 0.1 ppt-0.3 ppt off real GDP growth in several major economies, analysts at BMI, a Fitch Solutions unit, say in a note. Inflation could also rise by 1.0 ppt-2.5 ppt. Growth in the Gulf region is likely to be hardest hit due to its proximity to the conflict. Disruptions to shipping through the Strait of Hormuz affect both hydrocarbon and non-hydrocarbon trade, which would likely offset any oil output increases by OPEC producers. The supply shock may trigger capital outflows from emerging markets, prompting some central banks to halt easing cycles early and raise rates. Importers of energy from the strait such as Japan and China could also face shortages, BMI adds.(jason.chau@wsj.com)

0237 GMT - Oil prices could top $100 a barrel if the Middle East conflict is prolonged, Maybank analysts say in a note, warning that such a surge would severely hurt the global economy. While OPEC+ plans to raise lift April output by 206,000 barrels a day, the impact hinges on whether the Strait of Hormuz remains safe for shipping. Sustained elevated geopolitical tensions may also be supportive for the U.S. dollar, while emerging market currencies may face pressure, they add. Net oil importers such as the Philippines and Indonesia look particularly vulnerable, they say. Front-month crude oil WTI futures add 4.1% to $69.77/bbl; Brent rises 4.5% to $76.13/bbl. (megan.cheah@wsj.com)

0210 GMT - The oil price spike should prove temporary if the U.S. prevails over Iran and establishes a security blanket for vessels navigating the Strait of Hormuz, CGS International analyst Raymond Yap says in a note. The Middle East conflict has led some tankers to avoid the waterway, disrupting flows. OPEC+ has announced a 0.206 million-barrel-a-day output increase from April, which could help cushion supply risks. CGS maintains an overweight rating on Malaysia's oil and gas sector. Direct beneficiaries of higher oil prices include Hibiscus Petroleum, a pure upstream player, and Dialog Group, with about 35% of profit derived from upstream. (yingxian.wong@wsj.com)

0149 GMT - Brent oil prices could jump $15-$20 a barrel from the latest close, potentially approaching $90/bbl, Public Investment Bank analyst Khairul Fahmi says in a note. Escalating U.S. and Israeli strikes on Iran have reintroduced a geopolitical risk premium, while tanker congestion near the Strait of Hormuz raises near-term supply risks, he says. In a severe scenario of sustained disruption, prices could briefly hit $100/bbl-$110/bbl, though the rise is seen as event-driven, he reckons. OPEC+ supply increases and spare capacity should stabilize prices if tensions ease, with Brent retracing toward $70/bbl-$75/bbl over the medium term. Public IB maintains a neutral rating on Malaysia's oil and gas sector, expects selective upstream producers like Hibiscus Petroleum and Dialog Group to stand to benefit most from higher oil prices. (yingxian.wong@wsj.com)

2327 GMT - The jump in oil prices that followed the U.S. and Israel's attacks on Iran are fuelling a buying spree in Australian energy equities. In early trading today, front-month West Texas Intermediate futures rose 8.4% to $72.65 a barrel, ICE data showed. Front-month Brent crude oil futures lifted 8.5% to $79.08 barrel. The biggest winner on Australia's S&P/ASX 200 index is Karoon Energy, rising 15% to A$1.78. Karoon produces oil in Brazil so isn't directly affected by potential disruptions through the Strait of Hormuz, but benefits from the rise in oil prices. Woodside Energy rises 6% to A$30.02 and Santos is up 6.4% at A$7.19 early. (david.winning@wsj.com; @dwinningWSJ)

2310 GMT - Amplitude Energy's discovery of natural gas with the Isabella-1 well is positive, but Euroz Hartleys questions how it measures up against other results nearby. Amplitude said the well in southeastern Australia's Otway Basin intersected a gas-bearing section of the primary Waarre-C reservoir. Analyst Declan Bonnick says it's positive that Amplitude describes the reservoir as high quality. "However, the well result appears it could be thinner than expectations, given the closest Waarre-C reservoir production well, Casino-3, intersected 24.1 meters of net gas pay (versus 8.2 meters here)," Euroz Hartleys says. Amplitude rises 5.5% to A$2.69 early today. (david.winning@wsj.com; @dwinningWSJ)

2213 GMT - It's unsurprising that OPEC+ members agreed to a larger-than-expected increase in oil production in the wake of the U.S. and Israeli strikes on Iran, says Wood Mackenzie's Alan Gelder. There is a lot of uncertainty surrounding U.S.-Iran tensions, and "the market for non-sanctioned crudes is tight," he says. However, there is a risk that the OPEC+ decision is moot if tanker flows don't resume through the Strait of Hormuz, Gelder says. "While there are potential alternative supply routes available to Middle East producers--including Saudi Arabia's East-West pipeline to the Red Sea and additional Iraqi volumes via the Mediterranean--no alternatives can fully compensate for the loss of exports that transit the Strait of Hormuz," he says. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

March 02, 2026 04:20 ET (09:20 GMT)

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