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

0914 GMT - The dollar briefly hits a seven-week high against a basket of currencies before paring gains as oil prices swing. Crude prices turn lower after Japan's Kyodo News said Iran offered to reopen the Strait of Hormuz within seven days if the U.S. takes steps toward easing military pressure. An earlier rise in oil prices, which reflected continuingshipping risks, had lifted the dollar due to the U.S.'s position as a net oil exporter and the currency's safe-haven role. Meanwhile, markets are betting on further U.S. interest-rate rises after the Federal Reserve raised rates by a quarter point last week and signaled further moves. The DXY dollar index rises 0.1% to 100.514 after reaching as high as 100.667 earlier. (renae.dyer@wsj.com)

0743 GMT - European energy stocks post slight gains in early morning trade as oil prices halt their decline. Risks to shipping through the Strait of Hormuz remain elevated. A tanker entering the strait was struck by a projectile on Monday, according to U.K. Maritime Trade Operations. However, there remains some optimism that diplomatic efforts at the United Nations this week will help end the U.S. conflict with Iran. Brent crude futures are 1.3% higher at $101.64 a barrel, while West Texas Intermediate gains 1.3% to $97.00 a barrel. In London, Shell rises 0.8% while BP gains 0.5%. France's TotalEnergies and Norway's Equinor are around 1% higher, and Italy's Eni is up 0.8%. Spain's Repsol rises 0.6%.(adam.whittaker@wsj.com)

0733 GMT - The key issue for energy markets is whether the current shock remains an inflationary force or starts to slow down activity, says Claudio Galimberti from Rystad Energy. "The Fed, the ECB and the Bank of Japan are all signaling they will not let energy-driven inflation become embedded in wages and prices," the chief economist says. "But raising rates adds a second restraint on growth through higher borrowing costs, bond yields and eventually weaker corporate earnings and household demand." Now, focus shifts to the Trump-Xi summit on Thursday, which could offer important clues on how quickly the market's supply deficit might widen or ease. Any signal on secondary sanctions against buyers of Iranian oil, or on whether China is prepared to adjust its purchases of Iranian crude, could materially alter the global supply outlook, Galimberti says. (giulia.petroni@wsj.com)

0718 GMT - Shell's outlook is improved by high energy prices and the ARC Resources acquisition, Baader Helvea's Frederic Lorec writes. The British energy major agreed to buy Canadian energy producer ARC for about $13.6 billion in April. Baader increases its 2026 earnings per share forecast to $5.76 from $4.45, and its 2027 estimate to $5.57 from $4.48. The upwards revision is largely driven by higher oil price assumptions and additional barrels from ARC. Shares rise 0.6% to 3,511 pence.(adam.whittaker@wsj.com)

0712 GMT - Eurozone government bond yields open higher, tracking U.S. Treasury yield moves, alongside a rise in oil prices. That said, yields remain below recent multiyear highs amid the prospect of diplomatic progress between the U.S. and Iran after U.S. President Trump signaled readiness to meet his Iranian counterpart Masoud Pezeshkian at the UN meeting. The 10-year German Bund yield rises 3.1 basis points to 3.479%, the 10-year Italian BTP yield is up 4.6 basis points at 4.372%, and the 10-year French OAT yield rises 4.8 basis points to 4.507%, according to Tradeweb. (emese.bartha@wsj.com)

0701 GMT - Oil prices climb more than 1.5% after four consecutive sessions of losses, with investors turning their attention to the prospect of U.S.-Iran diplomatic talks on the sidelines of the U.N. General Assembly. In early European trading, Brent crude rises 1.6% to $101.97 a barrel, while West Texas Intermediate futures gain 1.7% to $97.40 a barrel. The rebound comes as traders weigh the potential for a diplomatic breakthrough against persistent risks to physical supply in the Middle East. Those risks remain elevated after another tanker was struck in the Strait of Hormuz, according to the UKMTO. Meanwhile, Houthi attacks in the Red Sea complicate efforts by Gulf producers to reduce their reliance on Hormuz. (giulia.petroni@wsj.com)

0626 GMT - U.S. Treasury yields open higher in European trade after a pause in trading in Asian hours as the Tokyo market is closed. The driver is an increase in oil prices, even as investors look out for some diplomatic progress between the U.S. and Iran with the possibility of a meeting between the presidents of both countries at the UN meeting. Regarding a Trump-Xi summit, "for markets, the big question is what's going to happen when the current one-year trade truce expires in November, and whilst the general tone remains positive, there still isn't an agreement yet," Deutsche Bank strategists say in a note. The 10-year Treasury yield rises 1.9 bps to 4.981%, according to Tradeweb. (emese.bartha@wsj.com)

0619 GMT - The Federal Reserve is expected to raise rates once more in December, BNY's John Velis says in a note. BNY is less sure whether the Fed can proceed with as many interest-rate hikes in 2027 as the market has priced in, the Americas macro strategist says. "The answer hinges on how effective tighter policy can be given the current inflation shock," he says. Much revolves around the situation in the Middle East, where visibility is low, he says. "A pullback in tensions--and the lower oil prices that would follow--would likely change the markets' and the Fed's calculations," Velis says. But being beholden to a situation that could worsen before it improves isn't a tenable stance, he adds. (emese.bartha@wsj.com)

0550 GMT - Global bond markets are likely to focus on the prospect of diplomatic progress between the U.S. and Iran at the U.N. meeting in New York with President Trump's speech on the agenda. Trump has signaled readiness to meet Iranian President Masoud Pezeshkian. The recent fall in oil prices helped bond yields decline. Brent is higher on Tuesday and was last up 1.4% at $101.75 per barrel. On Monday, the 10-year U.S. Treasury yield closed at 4.949%, while the 10-year German Bund yield ended at 3.455%, according to LSEG. (emese.bartha@wsj.com)

0541 GMT - BP shouldn't prioritize an immediate increase in shareholder returns, including a resumption of the quarterly buyback, Barclays analyst Lydia Rainforth writes in a note about the British energy major's improving financial outlook. Instead, BP's management should continue to focus on operational execution, she says. Securing the financial and operational performance over the next year is the best way for management to create long-term shareholder value, she says. Once this is done and debt worries are gone, the case for higher returns becomes a lot stronger, she say. Shares closed Monday at 542.90 pence. (adam.whittaker@wsj.com)

0533 GMT - BP could soon be in a materially stronger financial position faster than some investors expect, Barclays analyst Lydia Rainforth writes. War-induced high oil prices, exceptional refining margins and simplification efforts help BP's deleveraging efforts, she says. Prices and margins are higher than when BP set out guidance for the second half of the year, she says. Barclays sees BP's total net debt obligations falling to between $36 billion and $40 billion by the end of the year, from $54 billion at the end of the second quarter. Alongside falling gearing, this would contribute to BP's financial reset and help rebuild investor confidence, she says. Shares closed Monday at 542.90 pence.