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.

0743 GMT - European energy stocks post slight gains in early morning trade as oil prices halt their decline. Risks to shipping through the Strait of Hormuz remain elevated. A tanker entering the strait was struck by a projectile on Monday, according to U.K. Maritime Trade Operations. However, there remains some optimism that diplomatic efforts at the United Nations this week will help end the U.S. conflict with Iran. Brent crude futures are 1.3% higher at $101.64 a barrel, while West Texas Intermediate gains 1.3% to $97.00 a barrel. In London, Shell rises 0.8% while BP gains 0.5%. France's TotalEnergies and Norway's Equinor are around 1% higher, and Italy's Eni is up 0.8%. Spain's Repsol rises 0.6%.(adam.whittaker@wsj.com)

0718 GMT - Shell's outlook is improved by high energy prices and the ARC Resources acquisition, Baader Helvea's Frederic Lorec writes. The British energy major agreed to buy Canadian energy producer ARC for about $13.6 billion in April. Baader increases its 2026 earnings per share forecast to $5.76 from $4.45, and its 2027 estimate to $5.57 from $4.48. The upwards revision is largely driven by higher oil price assumptions and additional barrels from ARC. Shares rise 0.6% to 3,511 pence.(adam.whittaker@wsj.com)

0541 GMT - BP shouldn't prioritize an immediate increase in shareholder returns, including a resumption of the quarterly buyback, Barclays analyst Lydia Rainforth writes in a note about the British energy major's improving financial outlook. Instead, BP's management should continue to focus on operational execution, she says. Securing the financial and operational performance over the next year is the best way for management to create long-term shareholder value, she says. Once this is done and debt worries are gone, the case for higher returns becomes a lot stronger, she say. Shares closed Monday at 542.90 pence. (adam.whittaker@wsj.com)

0533 GMT - BP could soon be in a materially stronger financial position faster than some investors expect, Barclays analyst Lydia Rainforth writes. War-induced high oil prices, exceptional refining margins and simplification efforts help BP's deleveraging efforts, she says. Prices and margins are higher than when BP set out guidance for the second half of the year, she says. Barclays sees BP's total net debt obligations falling to between $36 billion and $40 billion by the end of the year, from $54 billion at the end of the second quarter. Alongside falling gearing, this would contribute to BP's financial reset and help rebuild investor confidence, she says. Shares closed Monday at 542.90 pence.(adam.whittaker@wsj.com)

0154 GMT - Lower system access charges under Malaysia's Corporate Renewable Energy Supply Scheme are expected to accelerate renewable energy project deployment, Affin Hwang IB analysts Ong Tze Hern and Peggie Wong say in a note. The charge will be reduced to 0.14 ringgit a kWh from 0.20 ringgit, improving project economics and potentially bringing forward engineering, procurement, construction and commissioning awards, they say. To qualify, projects must begin operations by end-2028, which could prompt construction to start by 1H 2027, they add. The analysts think CRESS projects are expected to emerge as an additional growth driver for the renewable energy sector, alongside the development of large-scale solar projects. Affin Hwang maintains an overweight rating on Malaysia's renewable energy sector, sees Solarvest and Samaiden as key beneficiaries. (yingxian.wong@wsj.com)

1948 GMT - Oil futures extend their slide to four sessions on easing concerns about oil flows out of the Middle East and expectations for renewed diplomatic efforts to bring the U.S. and Iran back to the negotiating table. "Prospects for renewed U.S.-Iran engagement during this week's U.N. General Assembly have created a potential path toward de-escalation, despite the absence of a formal breakthrough," Gelber & Associates says in a note.Continued Houthi attacks and shipping constraints "indicate that the selloff reflects improving expectations rather than normalized Middle Eastern flows." WTI settles down 4.5% at $95.78 a barrel and Brent falls 3.4% to $100.34 a barrel. (anthony.harrup@wsj.com)

1527 GMT - The jump in eurozone energy prices this year due to the Middle East conflict has been smaller in scale than the 2021-22 price shock, helped by a softer link between wholesale prices and consumer bills, ECB economists say in an economic bulletin. The impact of wholesale gas prices on wholesale electricity prices has been damped by a shift toward electricity generated from renewables, they say. It comes as the passthrough of wholesale prices to retail prices has sped up for gas prices overall, but less intensely for electricity, with variation among different countries remaining in both cases, they say. "This implies that wholesale energy price dynamics require close monitoring, as their passthrough to consumer prices remains an important source of near-term volatility in inflation," they add. (edward.frankl@wsj.com)

1339 GMT - Oil futures extend their slide to a fourth session on optimism about flows returning soon through Saudi Arabia's damaged East-West pipeline and about efforts to revive talks between the U.S. and Iran. U.S. Central Command head Admiral Brad Cooper said at the weekend that in the past two weeks, the volume of oil and cargo making it through the Strait of Hormuz was the highest of the past six months. WTI is down 3.8% at $96.49 a barrel and Brent falls 3.1% to $100.65 a barrel.