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.

1111 ET - With U.S. diesel prices hitting new all-time highs above $6 a gallon, "many independent truckers are likely being forced to sideline rigs temporarily until prices drop back down to around $4 or below," Ritterbusch & Associates says in a note. That's even with some ability to pass on the increased costs to final goods, which bodes ill for inflation down the road, the firm says. "Diesel will remain as the strongest part of the energy complex as long as Hormuz remains clogged." The AAA reports the average U.S. diesel price at a record $6.0556 a gallon. Nymex diesel futures are off 0.7% at $5.0265 a gallon while WTI crude retreats 2.9% after an eight-session rally. (anthony.harrup@wsj.com)

0933 ET - Oil futures are lower in early U.S. trading, pulling back from nearly four-month highs reached on escalation of the Middle East conflict. "It appears that the market is extremely thin and subject to whatever flows it sees and news storiesit receives," Scott Shelton of TP ICAP says in a note. In its monthly report, the IEA said it expects the recovery in oil flows out of the Middle East to stretch into 2027. The agency said it expects oil demand to fall by 2.5 million barrels a day this year, steeper than its previous 1.6 million b/d estimate, and predicts a 2.6 million b/d increase in 2027. WTI is down 3.5% at $98.92, and Brent is off 3.1% at $104.30 a barrel.(anthony.harrup@wsj.com)

0757 ET - European equity valuations are elevated on overly optimistic assumptions around the artificial intelligence-driven investment boom, Bank of America analysts write. Markets price record margin expansion and post-recession levels of earnings per share growth over the next three years, the analysts say. "We see ample scope for disappointment." Increased competition between model makers will reduce pricing power and lower margins--the same factor that has caused past tech booms to fall flat, they say. Moreover, the increased cost of money for hyperscalers, and the risk of insufficient electricity supply, will drag data center build-out on the continent. The analysts see potential for the Stoxx 600 to fall by 9% to around 580 into early 2027. The index rises 0.55% to 639.49 Friday.(josephmichael.stonor@wsj.com)

0444 ET - Energean is fairly valued, Berenberg analysts write, keeping a hold rating on the stock but slightly increasing the target price to 780 pence from 765 pence. The oil-and-gas company's first-half performance was solid and exploration efforts in Greece offer potential catalysts in early 2027, they say. However, the lower dividend outlook underwhelmed investors and net debt remains elevated against the company's target, they add. Shares fall 1% to 788.50 pence.(adam.whittaker@wsj.com)

0429 ET - BASF selling down its stake in Harbour Energy removes an overhang from the stock and is positive for the London-listed energy company, Barclays analyst Lydia Rainforth writes. The sale improves the stock's free float and reduces the risk of future large block disposals, she says. A major shareholder selling down its large stake is an important step for Harbour Energy, she adds. The company remains well positioned with a growing exposure to the U.S. as well as to high oil and gas prices, she says. The sale cuts BASF's stake to 16.4% from 24.3%. Harbour's shares fall 3% to 269.4 pence. (adam.whittaker@wsj.com)

0132 ET - 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)

0035 ET - 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)

2223 ET - 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)

2204 ET - 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)

2020 ET - 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)

1536 ET - 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.