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

0802 GMT - Investors slightly cut back expectations of the Bank of England increasing interest rates in 2026 as oil prices retreat. Talks between Iran and Oman about reopening the Strait of Hormuz have helped oil prices to drop, calming inflation fears. The price of Brent crude falls 2.9% to $86.03. Markets current price in a total of 23 basis points of BOE rate rises by year end, down 2 basis points from Tuesday's pricing, LSEG data show. (miriam.mukuru@wsj.com)

0753 GMT - Orsted's stabilizing execution and project delivery is a first step toward a return to growth, Citi analyst Jenny Ping writes. The competitive landscape now seems more rational and government support is improving, which should deliver better project return rates, the bank says. With around 20-25 gigawatts of viable tenders over the next 18 months, most with improving auction frameworks that better align with industry cost structures, the Danish renewable-energy company has substantial scope to deliver profitable growth, it says. "In our view, shares currently reflect little value for the unsecured pipeline, investors are effectively receiving a free growth option." Citi upgrades Orsted stock to buy from neutral and lifts its target price to 165 Danish kroner from 142 kroner. Shares rise 1.6% to 141.58 kroner. (dominic.chopping@wsj.com)

0733 GMT - Oil prices held below $90 a barrel as a flurry of positive headlines around U.S.-Iran peace talks soothed oil traders. In early European trading, Brent crude contracts for October delivery fall 2.5% to $86.38 a barrel, while WTI contracts fall 2.6% to $80.20 a barrel. Iran and Oman diplomats discussed a framework that would allow shipping to resume through the Strait of Hormuz, the countries said in a joint statement. Meanwhile, "anecdotal evidence suggests there is an increasing flow of vessels utilizing the Omani route through Hormuz," ANZ analysts said. In addition, Axios reported that around 40 ships transited the strait over the weekend, while The New York Times reported U.S. diplomats would return to the Middle East. (josephmichael.stonor@wsj.com)

0728 GMT - Yields on U.K. government bonds, or gilts, fall to a near two-week low as oil prices drop, calming concerns about inflation. The falls come after Iran held talks with Oman about reopening the Strait of Hormuz, with the Omani foreign ministry saying a temporary corridor could be announced soon. Analysts also cite unverified media reports that the U.S. and Iran could reach a new ceasefire deal in the coming days. The price of Brent crude price falls 2.4% to $86.48. Ten-year gilt yields fall to 4.981%, a 13-day low, Tradeweb data show. (miriam.mukuru@wsj.com)

0724 GMT - European oil stocks open lower Wednesday as oil prices fall on diplomatic talks to reopen the Strait of Hormuz. Talks between Pakistan and Iran are reducing the risk of an escalation in the Middle East conflict, ANZ analysts write. The analysts note that local media reports said the discussions yielded valuable results. This pulls Brent crude futures down 1.9% to $85.66 a barrel and WTI is 1.5% lower to $77.96 a barrel. Norway's Equinor leads the fallers, trading down 2.5%. In London, BP declines 2.2% while Shell is down 1.4%. Italy's Eni is down 1.6%, France's TotalEnergies slips 1.3% and Spain's Repsol moves 1% lower.(adam.whittaker@wsj.com)

0708 GMT - Eurozone government bond yields decline, with the 10-year German Bund yield slipping below 3.20% for the first time since Aug. 14, according to LSEG data. The fall is driven by lower oil prices on news that Iran and Oman have unveiled a joint framework to restore safer navigation on the Strait of Hormuz. "If we do move closer to a deal, we could see some short covering at the long end of the curve," Jefferies' Mohit Kumar says in a note. This could push long-dated yields lower. Jefferies' postioning indicators suggest "close to stretched" short positions in long-dated Bunds and U.S. Treasurys, he says. The 10-year Bund yield falls more than 2 basis points to a low of 3.186%, according to Tradeweb. (emese.bartha@wsj.com)

0703 GMT - Manila Electric faces an earnings hit from the likely removal of system-loss charges from consumers' electricity bills, Maybank Securities' Germaine Guinto says in a research report. Philippines President Ferdinand Marcos Jr. called for removal of system-loss charges, which account for around 5% of a typical consumer electricity bill, at his State of the Nation address, the analyst notes. System loss is the power lost between generation sources and final customer billing. Under its base case, the brokerage assumes electricity distribution utility Manila Electric absorbs nontechnical system losses that would lead to an estimated annual earnings hit of 3 billion pesos-4 billion pesos from 2027. The brokerage cuts the stock's target price to 467.00 pesos from 605.00 pesos with an unchanged hold rating. Shares are 0.4% higher at 481.00 pesos. (ronnie.harui@wsj.com)

0644 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.1% at around 3322. The price of Brent crude oil has dropped to $86 a barrel after reports that Iran has resumed talks with Oman about opening the Strait of Hormuz, while Iranian media says Iran wants to resume negotiations with the U.S., SEB strategist Gustav Helgesson writes. Additionally, Trump announced that all mines in the strait have been cleared. "The market remains strikingly susceptible to rumors and media reports." U.S. stock markets closed higher and Asian equity indices are mostly rising on Wednesday. Equity futures point to a positive open in Europe and the U.S. The OMXS30 closed at 3318.26, OMXN40 at 2746.83 and OBX at 2024.19. (dominic.chopping@wsj.com)

0641 GMT - Bitcoin moves higher, although it stays below the psychologically important $80,000 level. It has made massive gains in the last week, rising from levels below $65,000 to a peak of $81,237 on Tuesday, LSEG data show. "The cryptocurrency has gained about 25% during August, while recent momentum has been supported by a softer U.S. dollar, falling long-term Treasury yields, renewed institutional demand and expectations for a clearer U.S. digital-asset regulatory framework," Zaye Capital Markets' Naeem Aslam says in a note. Bitcoin is last up 0.9% at $78,916. (emese.bartha@wsj.com)

0627 GMT - Taiwan's power demand outlook is likely to be revised higher as the government reviews electricity needs amid growing AI-related consumption, according to Taiwan Premier Cho Jung-tai. Speaking at an energy forum on Wednesday, Cho says the Ministry of Economic Affairs and state utility Taipower are reassessing electricity demand through 2035 and are seeking to raise the current forecast of 2.5% average annual growth as AI adoption drives power consumption higher. He adds the government will strengthen grid resilience by building regional microgrids in phases and expanding energy storage capacity, creating a more decentralized and flexible power system. (jie.yang@wsj.com)

0541 GMT - U.S. Treasury yields mostly edge higher in Asian trade, having moved lower across the curve on Tuesday as oil prices fall. "The oil price decline [on Tuesday] gave breathing room to the government bond market, which saw yield declines of 5-7 bps in both the U.S. and Europe," SEB's Gustav Helgesson says in a note. "During the morning, however, U.S. yields are slightly higher," the macro strategist says. Oil falls Wednesday after Iran and Oman have unveiled a joint framework to restore safer navigation through the Strait of Hormuz, with Brent last trading 2% lower at $86.75 per barrel. The 10-year Treasury yield is up 0.6 bps at 4.643%, while the 30-year yield is up 0.8 bps at 5.181%, according to Tradeweb. (emese.bartha@wsj.com)

0512 GMT - A recent fall in E.ON's share price opens up an attractive opportunity, Berenberg says, lifting its rating on the stock to buy from hold. Shares in the utility fell this month after investors reacted negatively to a draft return-on-equity plan published by the German energy regulator for gas distributors. "The fall in E.ON's shares creates an opening to invest in an attractive regulated utility that has the opportunity and financial firepower to sustain scaled-up growth and value-accretive investment in its German power networks," Berenberg says, lifting its target on the Frankfurt-listed stock to 21 euros. Shares closed at 17.63 euros Tuesday.