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

1414 ET - Celestica's strong 2Q results, growth profile and extended order visibility are key drivers of its idiosyncratic outperformance, says RBC. In a report, Paul Treiber says Celestica's shares got a boost due to solid 2Q performance and a 2026-2027 outlook above consensus. "Celestica is executing well, with share gains, an increasing mix of high-quality revenue, and improving visibility to growth," he says, pointing to surging demand for AI compute and networking alongside supply agreements for hard-to-source components like memory.Shares are down 6.9% to C$458.82 but are up 64% over the last 52 weeks. (adriano.marchese@wsj.com)

1350 ET - U.S. commercial crude oil inventories fell by a larger-than-expected 7.2 million barrels last week as refineries ran near full capacity and imports fell, while an additional 3.8 million barrels were released from the Strategic Petroleum Reserve, the EIA reports. "Barrels keep disappearing, with little sign of that trend improving," says David Russell of TradeStation. "The market could enter winter with seriously depleted stockpiles because inventories will need time merely to stabilize before the normal late-fall rebuilding season can begin. Risks increase if the conflict drags on." WTI is up 6.5% at $84.41 a barrel and Brent rises 7.3% to $90.26.(anthony.harrup@wsj.com)

1138 ET - Yields on long-dated U.K. government bonds, or gilts, climb, after a resumption of hostilities between the U.S. and Iran causes oil prices to rise. Thirty-year gilt yields rise to a 5-day high after Iran launched a surprise attack on American forces in Jordan on Tuesday while the U.S. attacked Iran-backed groups based in Iraq. The attacks raise concerns about prolonged conflict and the risk of high inflation, with the price of Brent crude last up more than 7% at $90.17 a barrel. U.K. 30-year gilt yields climb more than six basis points to a high of 5.733%, LSEG data show. (miriam.mukuru@wsj.com)

1029 ET - The stronger correlation between oil prices and inflation expectations for the eurozone compared to the U.S. casts doubts on whether the euro would benefit from lasting U.S.-Iran peace deal, Commerzbank's Michael Pfister says. "While Federal Reserve [interest-rate] expectations have recently decoupled from the oil price, ECB expectations remain tied to inflation risks." Earlier this month when oil prices rose again, one-year euro-area inflation expectations climbed but U.S. expectations dropped. Fed rate rise expectations look ambitious and it's unclear whether this will change in the event oil prices fall, he says. Until that changes, the euro could struggle to rise versus the dollar, he says. The euro rises 0.1% to $1.1393. (renae.dyer@wsj.com)

1027 ET - U.S. natural gas futures are holding their ground after four sessions of losses with the August contract set to expire at the close. Power-sector demand from summer heat has been offset by strong production, weak LNG feedgas and above-average storage. While further weakness appears likely into August, prices could rebound in the autumn as lower gas prices encourage coal-to-gas fuel switching, and producers curtail output and delay bringing drilled wells on line, Eli Rubin of EBW Analytics says in a note. Nymex natural gas for August delivery is near flat at $2.663/mmBtu and the September contract is up 0.3% at $2.709/mmBtu. (anthony.harrup@wsj.com)

0937 ET - Markets are pricing in about a 64% chance the Fed will hold rates steady later today, but investors will be watching closely for any signals from Chairman Kevin Warsh on the path of monetary policy ahead. After cooler-than-expected June inflation data, volatile energy prices tied to tensions in the Middle East have re-escalated concerns about resurgent inflation. Warsh has indicated that the Fed will restore price stability and the central bank has no tolerance for inflation above its target. The question is whether the committee will act soon on these inflationary pressures or wait for more evidence that inflation is cooling. (jessica.coacci@wsj.co)

0934 ET - Procter & Gamble is expecting to take a $1 billion hit to earnings this year due to high gas prices. The projection is based on an estimate that the Brent crude oil price will be $90 a barrel, given the ongoing war with Iran, executives tell analysts on a call. Along with high fuel costs, P&G says it is also dealing with freight and trucking surcharges, supplier inflation and extra non-commodity costs tied to the conflict. P&G estimates EPS will fall 5% or more year-over-year in F1Q, with the majority of cost impacts happening in the first half of its new fiscal year. Procter & Gamble falls 4% in early trading.(katherine.hamilton@wsj.com)

0832 ET - Oil futures are back on the rise as the U.S. and Iran resume military strikes following a pause, again dimming hopes for a negotiated solution to the conflict. "Prolonging this war will deepen damage to vital oil facilities, whether in the Gulf states or in Iran, which cannot be reversed through negotiations and could require months or even years to repair," Samer Hasn of XS.com says in a note. That could keep oil prices relatively high for an long period, he adds. "Extreme and unlikely scenarios could become reality as the war's timeframe extends." WTI is up 6.6% at $84.51 a barrel and Brent is 6.9% higher at $89.93. (anthony.harrup@wsj.com)

0615 ET - Geopolitical concerns are the main drivers of U.K. government bond yields, or gilt yields, rather than domestic worries, MFS Investment Management's Benoit Anne says in a note. Investors are paying attention to the government's economic plans and the ways these plans will be funded. Markets, however, "seem prepared to give the new government the benefit of the doubt, provided fiscal discipline holds," he says. This year's budget will be key for investors as it will likely to provide more details on the government's economic measures and the source of funding, Anne says. Ten-year gilt yields rise 2.3 basis points to last trade at 4.980%, Tradeweb data show. (miriam.mukuru@wsj.com)

0611 ET - Decent growth in U.K. consumer credit and a rebound in mortgage approvals in June suggests households haven't become overly cautious due to the Iran war, RSM U.K.'s Thomas Pugh says in a note. This points to second-quarter growth holding up, he says. Households' bank deposits increased by more than the six-month average, while the rise in approvals to 58,200 suggests the housing market is picking up after May's drop, he says. "The resilience [in the housing market] seen so far suggests fundamental demand remains solid for now." However, mortgage rates have now reset higher, inflation is set to rise, and survey measures of house prices and activity are losing momentum, signaling that house-price growth will slow, Pugh says. (edward.frankl@wsj.com)

0603 ET - The GBP7.7 billion increase in U.K. net mortgage lending in June was the biggest since March 2025, but it isn't a sign that the housing market is back on its feet, Capital Economics' Paul Dales says in a note. "Instead, it probably reflects the hump of completions after people locked in mortgage rates before the jump after the Iran war started at the end of February," he says. Mortgage approvals only partially reversed the drop in May, rising to 58,2000 from 56,565, well down from 65,207 in April. "As a result, transactions and net mortgage lending will be more subdued in the coming months," Dales says. (edward.frankl@wsj.com)

0524 ET - The Bank of England should leave its key interest rate at 3.75% on Thursday, although it could warn of a possible hike if energy prices rise significantly or second-round inflationary effects surface, Berenberg's Andrew Wishart says in a note. That doesn't mean a hike is likely, however. The threat alone, along with higher oil prices, would be sufficient to increase interest-rate expectations and mortgage borrowing costs, thus reducing inflation risk, he says. Instead, Wishart says the BOE could actually resume rate cuts in December, then lower the policy rate to 3.0% in mid-2027. Wage and services inflation is trending lower, while President Trump will want to avoid higher oil prices into the midterm elections, he says.