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

0226 GMT - Iron ore prices are higher in early Asia trade. Near-term demand is expected to improve as steel mills restock ahead of the holiday, says Baocheng Futures analysts in a note. Steel production is stabilizing and ore consumption is ticking up, while weak mill margins limit the strength of the recovery in demand, they say. Chinese port arrivals are rebounding sharply, while miner shipments ease, but both remain relatively high for the year, keeping overall supply ample, they say. The market is likely to remain supported in the near-term by restocking before the holiday, they add. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 0.5% higher at CNY738.0 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0159 GMT - Copper prices are higher in early Asian trading. Prices are supported by strong fundamentals and tightening inventories, ANZ research analysts say, adding that "Ongoing supply-side issues have been mounting in recent months." Chile, the world's largest copper producer, saw shipments sink to their lowest level in more than a year in August, they note. The three-month LME copper contract is 0.6% higher at $14,604.50 a ton. (tracy.qu@wsj.com)

0126 GMT - Malaysia oil and gas sector is trading below their historical valuation levels, at 10X forward price-to-earnings, Affin Hwang IB analyst Ong Tze Hern says in a note. However, scope for a broad-based re-rating could remain limited until domestic job flows improve, he says. Near-term oil prices should stay supported by prolonged Middle East disruptions, prompting him to raise 2026 Brent forecast to $85/bbl from $81/bbl. But current oil price strength is unlikely to mark a structural upcycle, with Brent expected at $70/bbl in 2027 as Middle East supply normalizes. Resolving the Petronas-Petros issue and recovering Petronas capital expenditure could be more meaningful catalysts for domestic oil and gas services. Affin Hwang maintains a neutral sector's rating, pegging Dialog and Bumi Armada as top picks. (yingxian.wong@wsj.com)

2334 GMT - Oil rises in early Asian trade amid fears of more supply disruptions in the Middle East. "Over the weekend, more oil tankers were targeted by Iran, with three coming under attack for using an unauthorised route through the Strait of Hormuz," ANZ Research analysts say in a research report. This followed "U.S. attacks on three Iranian oil tankers as it looks to strengthen its naval blockade of Iranian ports," the analysts say. "The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the U.S. and Iran," the analysts add. Front-month WTI crude oil futures are 1.2% higher at $92.58 per barrel. (ronnie.harui@wsj.com)

2227 GMT - Santos's purchase of an additional 3.3% stake in Papua LNG from TotalEnergies looks attractive to its bull at Citi. This interest comes at a 50% discount to the bank's valuation. Santos will have a 21% stake in Papua LNG once Papua New Guinea buys into the project. Analyst Tom Wallington notes the transaction hinges on regulatory approvals and a final investment decision. Citi expects FID to happen later this year. "While the increased share increases Santos's Papua equity contribution by US$300 million, we view this favorably," Citi says. That reflects the project's strong internal rate of return of 15%, assuming oil prices average $65 over the long term. Papua LNG is also a good strategic fit and there's potential to make further operating savings under a simplified ownership and operatorship structure, Citi says. (david.winning@wsj.com; @dwinningWSJ)

2219 GMT - Citi is somewhat surprised by Wildcat Infrastructure's engagement with military shipbuilder Austal, which has been weighing a bid by South Korea's Hanwha for its U.S. operations. "From a transaction perspective, Hanwha's effective 19.9% stake (including swap) may represent a significant hurdle to any competing proposal," says analyst Sam Teeger. Still, it's unclear whether Hanwha can vote on a possible Wildcat-led transaction, he adds. Austal yesterday said it held a preliminary discussion with Wildcat, but hasn't received a proposal. Citi expects Hanwha to be the more logical buyer. "If the U.S. administration's objective is to accelerate naval shipbuilding capacity, Hanwha's extensive shipbuilding expertise appears an advantage, albeit with the caveat that its defense experience has largely been in Korea rather than U.S.," Citi says. It has a buy call on Austal. (david.winning@wsj.com; @dwinningWSJ)

1433 GMT - Stocks in Dubai and Qatar gain while Saudi Arabia fall as geopolitical risks weigh more heavily on the latter, says Mazen Abou Ismail, head of trading desk at FFA Private Bank Dubai. Dubai is being supported by domestic growth and Qatar by its LNG exposure, while Saudi Arabia is more sensitive to risks around infrastructure, shipping and broader regional sentiment, he says. Oil near $97 supports government revenues, but recent attacks on Saudi assets, including the Jazan refinery, are adding to the risk premium. The Dubai Financial Market General Index rises 0.8%, Qatar's QE Index gains 0.5% and Saudi Arabia's Tadawul All Share Index falls 0.4%. (farhan.rafid@wsj.com)

1431 GMT - Oil prices extend earlier gains, with Brent crude marching toward $100 a barrel as fresh exchanges of strikes between the U.S. and Iran keep the geopolitical risk premium high. The global oil benchmark is up 1.3% to $97.56 a barrel, while WTI futures rise 1.4% to $92.72 a barrel. "A sustained disruption to actual crude flows could quickly push prices above $100 a barrel," analysts at brokerage firm Kotak Securities. "Tightening inventories and stronger refined-product prices add support." In the U.S., Labor Day weekend travelers are facing the highest gas prices ever for this time of year. According to AAA, the national average price at the pump was $4.15 on Monday, a record high for the holiday. (giulia.petroni@wsj.com)

1339 GMT - Investors are increasingly pricing in the possibility of the Bank of England raising interest rates in the coming months due to inflation concerns as oil prices rise. Markets fully price in one quarter-point BOE rate increase by December, and a second rate hike by March 2027, LSEG data show. Brent crude price rises 1.1% to $97.39 per barrel. (miriam.mukuru@wsj.com)

1325 GMT - Global markets could face increased volatility due to rising geopolitical tensions, uncertainty around the U.S. midterm elections and an unclear outlook on U.S. interest rates, Validus Risk Management's Kambiz Kazemi says in a note. Renewed U.S.-Iran hostilities have caused oil prices to rise and weakened risk appetite. "Monetary policy uncertainty, political risk and geopolitical tension" could drive volatility across asset classes, he says. Ten-year gilt yields rise 1.9 basis points to last trade at 5.158% and ten-year Bund yields climb 2.8 basis points to 3.369%, Tradeweb data show. (miriam.mukuru@wsj.com)

1143 GMT - Fitch Ratings affirmed Qatar at AA with a negative outlook as risks from the U.S.-Iran war continue to weigh on the sovereign's fiscal and debt profile. Fitch now forecasts Qatar's economy to contract 18.8% in 2026, with the general-government deficit at 2.7% of GDP and debt rising to 64.1% of GDP, before growth rebounds 16% in 2027. The rating committee highlighted risks of further damage to hydrocarbon infrastructure, uncertainty over LNG transit through the Strait of Hormuz and the conflict's impact on fiscal accounts, reserves and Qatar Investment Authority assets. (farhan.rafid@wsj.com)

1017 GMT - The 1.1% drop in German industrial output in July defies the solid order intake and noticeable recent improvement in business sentiment, KfW chief economist Dirk Schumacher says. "The decline in industrial production can therefore be explained primarily by production changes in the automotive industry," he says. German data agency Destatis noted that a multi-week shutdown at a car plant was likely one of the main drivers of the fall. In August and September, the low water levels of the Rhine likely further dampened production, Schumacher says. However, the signals from orders and sentiment indicators point to the underlying improving trend, even if that will probably only be reflected in the figures for the fourth quarter, he says.