The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0532 GMT - BPX is central to British energy major BP's growth story, Barclays analyst Lydia Rainforth writes after hosting the division's CEO Kyle Koontz at the Barclays Energy-Power Conference. The U.S. onshore oil and gas business delivered around 545,000 barrels of oil equivalent a day in the second quarter of the year, making a significant contribution to BP's overall production. As production has ramped up, BPX has improved capital efficiency by around 35% since 2023, while unit costs are down around 10%, she writes. Koontz indicated that BPX is ahead of its production growth objectives as it targets production of above 650,000 oil equivalent barrels a day by 2030, Rainforth said.(adam.whittaker@wsj.com)

0435 GMT - Malaysia's power and grid-related earnings are expected to provide clearer visibility into the year-end, Rakuten Trade's research head Kenny Yee says in a note. Grid investment could remain a key earnings driver, with Tenaga Nasional's capital spending program rising to 43 billion ringgit for 2025-2027 from 21 billion ringgit across 2022-2024, with further upgrades expected through 2030, he says. Spending on transmission, substations and electrical systems should benefit utilities and infrastructure companies, while rising data-center electricity demand provides an additional long-term catalyst, he reckons. Yee also expects Kee Ming and Gamuda to benefit from continued infrastructure investment. Rakuten keeps its year-end KLCI target at 1770, assuming the 2027 budget will be presented on Oct. 9. Yee expects the budget to confirm, rather than defer, planned energy-transition spendings. The KLCI is 0.9% lower at 1690.77. (yingxian.wong@wsj.com)

0223 GMT - HD Hyundai Heavy Industries' engine production capacity is expected to more than double as a result of increased facility investment, Nomura's Eon Hwang says. The analyst expects the shipbuilder to expand its manufacturing capacity for HiMSEN engines, which can power both ships and electricity-generation facilities, to 7.2 gagawatts by 2030 from 3GW currently. Of the total capacity, 4GW is likely to be dedicated to land-based power-engine production, Hwang says. The company's plan to invest 1.072 trillion won to build production facilities in South Korea for power engines and small modular reactors could prompt an earnings upgrade, he adds. Nomura raises its target price for the company to 560,000 won from 550,000 won, keeping a buy rating on the stock. Shares are 7.1% higher at 485,500 won. (kwanwoo.jun@wsj.com)

0204 GMT - Prices of Brent crude oil above $105 per barrel are becoming a broader headwind for assets including equities and precious metals, OCBC Group Research's Christopher Wong says in a research report. Currencies of Asia ex-Japan countries, especially net energy importers like India's rupee, and "high beta" currencies like the Australian dollar and the Korean won have come under some pressure, the FX strategist says.The U.S. dollar edges 0.2% lower to 1,347.30 won, while the Australian dollar is 0.1% higher at US$0.7159, LSEG data show. (ronnie.harui@wsj.com)

0020 GMT - Oil rises in early trade on escalating concerns over supply disruptions in the Middle East. ANZ Research analysts say that reports of Iran-backed Houthi militants seizing the port city of Mokha on Yemen's west coast could give the militants a foothold and enable them to control the Bab al-Mandeb Strait. The strait is a chokepoint for energy exports through the Red Sea. These attacks are weighing on Saudi Arabian oil exports, the analysts say in a report. Front-month WTI crude oil futures are up 0.5% at $103.01 a barrel; front-month Brent crude oil futures are 0.4% higher at $108.10 a barrel. (ronnie.harui@wsj.com)

1936 GMT - Oil futures rise the their highest level in nearly four months with increased fighting across the Persian Gulf region raising supply worries. "Iran has stated they are ready for a more intense war and President Trump stated the conflict will last into the mid-term elections, which now has solidified the fact that tighter supplies are being priced in for the foreseeable future," Dennis Kissler of BOK Financial says in a note. Futures are in an overbought condition, "with a corrective phase due," he adds. WTI settles up 6.7% to $102.48 a barrel and Brent gains 6.3% to $107.63, their highest closes since May 19. (anthony.harrup@wsj.com)

1526 GMT -- Dubai leads most major Gulf stocks lower as escalating U.S.-Iran hostilities and attacks on Saudi Arabia keep regional risks elevated. The Dubai Financial Market General Index falls 0.4%, Qatar's QE Index declines 0.3% and Saudi Arabia's Tadawul All Share Index edges down 0.1%. Abu Dhabi's benchmark index bucks the trend, edging up 0.1%, with major constituent ADNOC Gas rising 0.6%. Disruption in the Strait of Hormuz strengthens the case for ADNOC Gas to have export capacity on the U.A.E.'s east coast as the government considers ways to reduce reliance on the waterway, Barclays analyst Ramachandra Kamath says. (farhan.rafid@wsj.com)

1438 GMT - European energy producers and insurance companies are likely to benefit due to the elevated energy prices and the European Central Bank decision to increase interest rates, eToro's Lale Akoner says in a note. The ECB raised the deposit rate to 2.5% during Thursday's policy decision, as markets expected. Sectors that could be negatively affected by the rate increase include property, housebuilders, smaller companies, and retailers, she says. "Banks may benefit initially from wider lending margins, but that advantage will fade if loan demand weakens and defaults rise." (miriam.mukuru@wsj.com)

1410 GMT - Grain futures trading at multi-year highs this year prompted hopes for farmers who have suffered from past low commodity prices and inflated input costs for fertilizer and seeds. But surging fuel prices from wars overseas threaten to evaporate any benefit from those higher crop prices. According to AAA, current retail diesel prices set a new high, at $5.9773 a gallon. For farmers, this means harvesting may prove to be an even-steeper expense than anticipated. Last week, the USDA forecast 2026 net farm income at $158.4 billion--up from its previous forecast of $153.4 billion. (kirk.maltais@wsj.com)

1358 GMT - Oil futures are sharply higher with WTI hitting $100 a barrel for the first time since May amid increased military strikes between the U.S. and Iran and Houthi advances toward the Bab el-Mandeb strait. "The move is raising fresh concerns about the security of global energy supplies," Fawad Razaqzada of Forex.com says in a note. "A sustained move above $100 in WTI would put renewed upward pressure on inflation expectations." WTI is up 4.1% at $99.95 a barrel and Brent is 3.8% higher at $105.10 a barrel. (anthony.harrup@wsj.com)

1306 GMT - European energy stocks trade higher in afternoon trade as oil ticks above $105 a barrel. Brent crude trades 4.5% higher at $105.80 a barrel while WTI tops $100 a barrel after rising nearly 5%. The rally comes as traders assessed escalating attacks on Gulf shipping and renewed Houthi strikes on Saudi Arabia. In London, BP gains 2.5% and Shell rises 2%. Norway's Equinor is up 2.4%. Spain's Repsol, France's TotalEnergies and Italy's Eni all rise over 1%. (adam.whittaker@wsj.com)

1254 GMT - Saudi Aramco could grow operating cash flow by around 30% by 2030, Barclays analyst Lydia Rainforth writes after hosting the company at the Barclays Energy-Power Conference. The Saudi Arabian national oil company expects gas developments to add approximately $12 billion to $15 billion of incremental cash flow over the period, she says. Secondly, the company expects improved downstream performance to add up to $10 billion, she says. And finally, oil and gas production growth will contribute, with the company estimating that each additional 1 million barrels a day generates approximately $11 billion to $12 billion at the 2025 crude oil price, she says. Aramco has the opportunity to add 2 million barrels a day of additional production.