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

0848 ET - The rise in energy prices stemming from the Iran war poses a headwind to eurozone growth and the euro, MUFG Bank's Derek Halpenny says in a note. Europe faces a terms of trade hit from a further surge in energy prices, particularly natural gas prices, he says. Europe delayed winter gas purchases after the onset of the war and this appears to be backfiring, he says. Drought across Europe is also affecting food production and boosting energy demand. MUFG estimates that the euro is currently about 2.5%-3.0% overvalued versus the dollar. The euro could underperform if the above factors start to impact sentiment and economic activity, Halpenny says. The euro last trades steady at $1.1574. (renae.dyer@wsj.com)

0835 ET - Bitcoin trades modestly lower along with U.S. stock futures as the prospect of a deal to end the Iran war dims. President Trump said he wouldn't seek an extension of the 60-day truce between the U.S. and Iran, which expired Monday, and threatened to bomb Oman. Markets are showing a more cautious tone as investors contend with rising long-term bond yields, renewed geopolitical uncertainty and some fresh nervousness around AI-related stocks, Capital.com analyst Daniela Hathorn says in a note. Bitcoin falls 0.1% to $64,274, LSEG data show. (renae.dyer@wsj.com)

0752 ET - The U.K.'s competition watchdog says it is concerned that some retailers didn't pass on price reductions on wholesale fuel to consumers fast enough, and this could feed into high margins in the sector. The Competition and Markets Authority is researching how the Middle East conflict is affecting fuel costs. Its latest report, published Tuesday, says the conflict led to sharp rises in wholesale fuel costs, particularly of diesel. The report says the sector saw more sustained falls in wholesale fuel prices in late May and June, but the CMA is concerned that some retailers didn't immediately pass on diesel price falls to drivers. However, it also says that it hasn't found evidence of retailers taking advantage of the conflict by changing their pricing strategies. (edith.hancock@wsj.com)

0730 ET - Gulf markets are likely to remain focused this week on whether negotiations over the Strait of Hormuz translate into a visible improvement in shipping activity, Iridium Advisors says. Higher oil prices are no longer lifting regional markets uniformly, with investors distinguishing between companies benefiting from tighter energy and logistics markets and those exposed to slower trade, travel disruption or margin pressure, the firm says. The final large wave of second-quarter earnings calls should also remain in focus, with 26 scheduled this week before the reporting calendar thins out, Iridium says. (farhan.rafid@wsj.com)

0631 ET - Tuesday's auction of July 2036 U.K. government bonds delivered strong results despite the current weak performance in global sovereign bonds. "Throughout the ongoing geo-political uncertainty, [U.K.] primary issuance continues to remain strong," Aberdeen investment director Matthew Amis said. The bid-to-cover ratio, which measures investor demand, was 3.65 times. The yield tail was 0.1 basis points, which suggested demand for the gilt was strong. Ten-year gilt yields trimmed their rise to last trade at 5.084%, from 5.090% prior to the gilt auction, Tradeweb data show. (miriam.mukuru@wsj.com)

0617 ET - Investors expect the Brent crude oil price to average at a higher level by year-end than in July, Bank of America's August global fund manager survey shows. Investors in the survey expect Brent oil to trade at $76 per barrel in a weighted average forecast by year-end, up from July's forecast of $71 per barrel, it says. Brent currently trades at $91.04, up 0.2% on the day. (emese.bartha@wsj.com)

0558 ET - BHP's full-year results underline new CEO Brandon Craig's promising start, head of markets at AJ Bell, Dan Coatsworth, writes. Copper has driven the miner's performance and has helped deliver a healthy increase in the dividend, he adds. The market will be watching BHP's M&A ambitions closely after Craig's predecessor, Mike Henry, attempted to merge with Anglo American, Coatsworth says. BHP's London shares rise 0.4% to 3,256 pence. (adam.whittaker@wsj.com)

0533 ET - British energy company BP could resume buybacks in 2027 as it cuts debt and shores up its balance sheet, Berenberg analysts write. The company will retain its focus on paying down net debt via disposals, they say. The analysts expect more than $6 billion in additional disposal proceeds in 2027, which could give it cash for buybacks, they say. Under current oil and gas price assumptions, Berenberg expects $500 million in quarterly buybacks from the second quarter of 2027, the analysts say. This would deliver a full-year buyback of $1.5 billion for 2027. Shares rise 1.7% to 528.30 pence. (adam.whittaker@wsj.com)

0457 ET - Markets raise their bets on the possibility of the Bank of England increasing interest rates in 2026. The extended U.S.-Iran war is raising concerns about a prolonged energy supply shock contributing to high global inflation. "Higher oil prices feed into headline [inflation] through gasoline and energy costs, but the bigger issue is second-round risk," Tickmill Group's Patrick Munnelly says in a note. Investors price in a total of 30 basis points of BOE rate rises in 2026, up 5 basis points from last week's pricing, LSEG data show. (miriam.mukuru@wsj.com)

0454 ET - A weak U.K. jobs market questions the need for rate hikes from the Bank of England, says James Smith at ING. Hiring in the private sector continues to struggle following last year's tax and minimum wage hikes, he says. "Consumer-facing industries are seeing the sharpest falls in payroll employment." Meanwhile there is little sign that wage growth is about to turn higher. "If the U.K. economy really is picking up speed--as last week's GDP data tentatively hints--then there's little sign of it in the jobs market," Smith says. ING expects the BOE to keep rates on hold until next spring before cutting at least twice in 2027, barring a severe and prolonged rise in energy prices. (don.forbes@wsj.com)

0454 ET - The euro could struggle to rise against the dollar in the near term given higher energy prices and uncertainty ahead of the Federal Reserve's meeting minutes on Wednesday, ING's Chris Turner says in a note. The euro's rally on Monday stalled just above $1.16 and investors will be reluctant to push it much higher, he says. "Despite recent positive economic surprises in the eurozone, the fact that natural gas prices are close to their highs for the year merits some caution." The euro falls 0.1% to $1.1572 after rising to a two-month high of $1.1614 Monday, LSEG data show, driven by reduced U.S. interest rate rise expectations. ING expects it the euro to trade in a $1.1520-$1.1580 range Tuesday.(renae.dyer@wsj.com)

0411 ET - South Korean shipping company HMM's earnings could come under pressure, as the global container shipping market is expected to face worsening oversupply from 2027, KB Securities' Kang Seong-jin and Kim Ji-yun say. Fears that fleet supply could exceed cargo demand through 2029 are weighing on investor sentiment, the analysts write in a note. Container ships scheduled for delivery amount to 3.31 million twenty-foot equivalent units in 2027, 5.25 million TEUs in 2028 and 3.78 million TEUs in 2029, they add. That would be equivalent to 9.8%, 15.6% and 11.2%, respectively, of the current global container fleet's total capacity. KB expects HMM's operating profit to fall 23% this year.