Global Energy Roundup: Market Talk

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

1035 GMT - U.S. Treasury yields fall as oil prices drop and investors hope for a diplomatic solution in the Middle East. The dollar rises to a one-month high against a basket of currencies before Wednesday's Federal Reserve's rate decision and on safe-haven demand as a tech-stock selloff deepens. The Fed is expected to hold interest rates but could stress inflationary risks from high energy prices, while a hike isn't out of the question. "The Fed will have no choice but to strike a hawkish note on Wednesday," Ebury's Matthew Ryan says in a note. Money markets price a 34% probability of a Fed rate hike, according to LSEG. The 10-year Treasury yield falls 1.9 basis points to 4.622%, according to Tradeweb. The DXY dollar index hits a high of 101.640. (emese.bartha@wsj.com)

1027 GMT - The cost of insuring euro-denominated credit against default declines as U.S. and Iran pause hostilities. Markets hope for a resolution to the conflict and the reopening of the Strait of Hormuz. "Oil's sharp drop after the U.S. paused military strikes against Iran suggests investors are becoming more confident that diplomacy can prevent a prolonged disruption to global energy supplies," eToro's Lale Akoner says in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps falls 1 basis point to 260bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

1018 GMT - Palm oil ended lower, tracking weakness in crude oil, says Abdul Hameed, director of sales at Pakistan-based Manzoor Trading. A lull in fighting between the U.S. and Iran has accelerated diplomacy aimed at a short-term fix for the most contentious issue of the war, he says. Hameed believes this correction will be limited due to strong underlying palm oil fundamentals. The Bursa Malaysia Derivatives contract for October delivery falls 30 ringgit to 4,643 ringgit a ton. (tracy.qu@wsj.com)

0854 GMT - Investors lower their expectations of the Bank of England raising interest rates in the coming months as oil prices retreat. The price of Brent crude oil falls 3.6% to $85.17 as negotiations aimed at resolving the Middle East conflict resume, easing market concerns about high energy prices pushing up inflation. Markets currently price in a total of 35 basis points of BOE rate increases in 2026, 12 basis points down from last week's pricing, LSEG data show. (miriam.mukuru@wsj.com)

0729 GMT - Yields on U.K. government bonds, or gilts, fall as oil prices decline amid prospects of a U.S.-Iran ceasefire deal. The two nations paused attacks over the weekend, creating room for negotiations to allow the safe passage of ships through the Strait of Hormuz. Investors are cautiously optimistic about a potential ceasefire agreement while lower oil prices reduce expectations of Bank of England interest-rate rises in the coming months. Ten-year gilt yields fall 3.6 basis points to last trade at 4.951%, Tradeweb data show. (miriam.mukuru@wsj.com)

0709 GMT - Bitcoin falls as a selloff in chip stocks and concerns about the U.S.-Iran conflict dampen risk appetite. Chip stocks in the U.S. and Asia slumped amid growing concerns over artificial-intelligence spending. President Trump told Axios Monday that he paused strikes on Iran to allow for negotiations but could return to expanded military action if talks fail. Investors are also looking ahead to the Federal Reserve's policy decision on Wednesday where money markets price a 64% chance that interest rates will be held steady and a 36% chance of a 25 basis-point rate rise, according to LSEG. Bitcoin drops 2.1% to $63,508, LSEG data show. (renae.dyer@wsj.com)

0659 GMT - Delta Electronics (Thailand)'s margins may widen gradually, but cost pressures could stay high, CGS International's Thanapol Jiratanakij says in a research report. The electronics products manufacturer expects gross margin to improve sequentially from 3Q as inventory provisions fall and production normalizes, the analyst notes. Also, management expects the company's internally developed products to account for a larger share of revenue in 2H, which should improve the sales mix. However, raw material costs linked to products such as printed circuit boards remain elevated. The brokerage cuts its 2026-2028 core EPS forecasts for the company by 1.7%-15.5%. It lowers the stock's target price to 245.00 baht from 253.00 baht, with an unchanged reduce rating. Shares last closed at 285.00 baht. (ronnie.harui@wsj.com)

0658 GMT - Oil prices extend losses as a lull in U.S.-Iran hostilities spurred diplomatic efforts, with Iran and Oman seeking an agreement to reopen the Strait of Hormuz. The front-month Brent crude contract slides 2.3% to $86.31 a barrel after settling 8.7% lower in the previous session, while WTI falls 2% to $80.93 a barrel. Prices were also weighed down by reports that the Caspian Pipeline Consortium terminal resumed pipeline loading operations following a week-long suspension. Despite the selloff, supply risks remain elevated. Saudi Arabia said it intercepted drones launched by Iran-backed militias in Iraq targeting oil facilities. Meanwhile, Persian Gulf oil flows have dropped to 41% of prewar levels, while Red Sea shipments fell by more than 3 million barrels a day over the past week as Saudi Arabia rerouted some exports via the Suez Canal and Russia sharply reduced Red Sea shipments, according to Goldman Sachs. (giulia.petroni@wsj.com)

0658 GMT - Eurozone government bond yields fall in early trade, tracking declines in U.S. Treasury yields as oil prices continue to slip amid efforts to find a solution to the conflict in the Middle East. On Tuesday, the Netherlands and Italy will conduct government bond auctions, while the economic data calendar is light ahead of a flurry of key indicators, including flash estimate inflation for July and first estimate GDP for the second quarter later in the week. The 10-year Bund yield falls 2.1 basis points to 3.105%, according to LSEG. (emese.bartha@wsj.com)

0650 GMT - The dollar eases slightly amid uncertainty over the U.S.-Iran conflict and following renewed calls for interest-rate cuts from President Trump. Trump told Axios Monday that he paused strikes on Iran to allow for negotiations but could return to strong military action if talks fail. Trump separately called for lower rates again during a session with reporters on Air Force One and said Federal Reserve Chair Kevin Warsh will "do the right thing." The Fed is expected to keep rates steady Wednesday. The DXY dollar index falls 0.1% to 101.493 after reaching a four-week high of 101.573 overnight. (renae.dyer@wsj.com)

0622 GMT - Murata Manufacturing is likely to keep its dominant market share in next-generation multilayer ceramic capacitors, Nomura's Manabu Akizuki says in a research report. The analyst cites the difficulty of manufacturing MLCCs, the widening gap in yields between the Japanese electronic components manufacturer and its rivals, and tough quality requirements, including for effective electrostatic capacitance. Nomura lifts its forecasts for on-year growth in Murata Manufacturing's capacitor sales to 22.9% from 12.3% for this fiscal year, to 23.8% from 13.4% for next fiscal year, and to 9.8% from 8.1% for fiscal year ending March 2029. The brokerage raises the stock's target price to 9,000 yen from 6,000 yen with an unchanged buy rating. Shares are 12% lower at 7,113 yen. (ronnie.harui@wsj.com)

0553 GMT - U.S. Treasury yields decline in Asian trade as oil prices also move lower, both extending Monday's moves. Higher demand for U.S. Treasurys--which causes prices to rise and yields to fall--and the decline in oil prices come as U.S.-Iran diplomacy aimed at a short-term solution in the Middle East war has accelerated. The reaction in the bond market to declining oil prices has so far been modest but given the uncertainty surrounding the war in the Middle East, "the bond market seems to be careful in 'correcting' too much," Danske Bank's Joel Rossier says in a note. The two-year Treasury yield falls 1.7 basis points to 4.305%, while the 10-year yield declines 1.1 basis points to 4.630%, according to Tradeweb data. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 06:35 ET (10:35 GMT)