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

1553 ET - U.S. natural gas futures settle at their highest level in a month as hot weather lingers into late August and early September, maintaining high power-sector demand. Market focus turns to Thursday's EIA weekly storage report, which coincides with the September contract expiration. Analysts in a Wall Street Journal survey see an inventory build of 21 Bcf for last week, smaller than the five-year average of 33 Bcf. That would reduce the inventory surplus to 173 Bcf from 185 Bcf the previous week. Nymex natural gas rises 2.6% to $2.842/mmBtu. (anthony.harrup@wsj.com)

1546 ET - Crude futures extend losses to three sessions on cautious expectations that the U.S. economic isolation of Iran, rather than military action, could bring about a reopening of the Strait of Hormuz. "The de-escalation and fears of tighter global supplies are easing, which is tripping some long liquidation by funds," Dennis Kissler of BOK Financial says in a note. Rising U.S. commercial crude stocks are also a bearish factor, he adds. The EIA reported a 95,000 barrel increase in crude inventories, which was smaller than expected but still a fourth consecutive weekly rise. WTI edges down 0.2% to $82.23 a barrel, and Brent falls 0.8% to $87.84.(anthony.harrup@wsj.com)

1422 ET - Gold futures ease back from the three-month highs reached early this week after PCE inflation--a consumer price gauge favored by the Fed--picked up in July. The report was closely watched given its implications for Fed policy. "The metal could continue to benefit from concerns over U.S. debt levels as well as expectations of a Fed hold at its next meeting," Critical Metals CEO Tony Sage says in a note. "However, a hike is still expected at the following meeting, which could fuel some pressure." Front month gold finishes down 0.86% to $4598.20 a troy ounce. Silver drops 0.94% to $67.990 a troy ounce.(anthony.harrup@wsj.com)

1326 ET - The breakdown in trade relations between Canada and the U.S. is part of a wider continuing trade realignment, a story that is still being written, says BMO Capital Markets' Francois Trahan. The investment strategist says while people in Canada may think all that is needed is a new U.S. administration in two years and things can return to the norm, that isn't necessarily what lies ahead. "Friendly reminder that the Biden administration didn't remove the tariffs that were imposed on China during the first Trump administration." Trahan says a future administration may not have the ability to change the tariff policy because of the fiscal situation in the U.s. (robb.stewart@wsj.com; @RobbMStewart)

1323 ET - There is a divide between Canada and the U.S. that may make future negotiations over the U.S.-Mexico-Canada trade pact tough, says Steve Verheul, former chief trade negotiator for Canada. Speaking during a briefing organized by Bank of Montreal, Verheul says the two countries are increasingly in markets that move them further apart. Canada is likely to redouble efforts to diversify trading relationship, and there could be action on procurement and possible defense and energy-related issues, says the principal at public affairs agency GT. He doubts Canada will use energy or defense in any kind of retaliation against the U.S., but it will aggressively seek opportunities with other countries on areas like energy and critical minerals. (robb.stewart@wsj.com; @RobbMStewart)

1057 ET - Qatar leads most major Gulf stock markets higher, extending a broadly positive week for regional equities, while the S&P GCC Investable index is up 4.5% month-to-date. Iran and Oman have outlined a temporary framework to restore shipping through the Strait of Hormuz, with around 40 vessels passing through over the weekend as talks continue toward a more permanent corridor. Qatar's QE Index rises 0.7%, the Dubai Financial Market General Index gains 0.6% and Saudi Arabia's Tadawul All Share Index adds 0.3%, though Abu Dhabi's benchmark index slips 0.3%. (farhan.rafid@wsj.com)

0944 ET - Bank of America upgrades First Abu Dhabi Bank to buy from neutral, saying the lender's earnings growth and return potential aren't reflected in its current valuation. BofA expects about 8% compound annual EPS growth through 2028 and return on tangible equity of 17%-18%, supported by government-related lending, funding strength, pricing discipline and fee-income growth. It raises its price objective 10% to AED23.20, implying around 18% upside. Geopolitical risk remains the main swing factor, but First Abu Dhabi Bank's domestic franchise, sovereign-linked activity and balance-sheet strength provide buffers, BofA says.(farhan.rafid@wsj.com)

0937 ET - U.S. natural gas futures are higher with several more weeks of hot weather likely to drive cooling demand, along with a pickup in LNG feedgas flows. "The 1-15 day weather forecast may vie for the hottest on record," Eli Rubin of EBW Analytics says in a note. September options and contract expirations today and tomorrow will guide near-term price moves, but as October moves to the front of the curve "medium-term likelihood for a moderate rally may be accelerated due to searing heat, soft production, and returning LNG export demand," he adds. The Nymex September contract is up 2.4% at $2.837/mmBtu.(anthony.harrup@wsj.com)

0900 ET - The slide in oil futures extends into a third session with renewed moves seen toward a reopening of the Strait of Hormuz after the U.S. outlined tighter economic sanctions on Iran. The oil market had been "seriously spooked" by the announcements of new measures a week earlier, but "breathed a sigh of relief at the Treasury's rather modest measures and began to unwind their long positions in Brent in line with the 'buy the rumor, sell the fact' principle," FxPro chief market analyst Alex Kuptsikevich says in a note. "The selloff then continued against the backdrop of a de-escalation of the conflict in the Middle East." WTI is down 2.4% at $80.39 a barrel and Brent is off 2.5% at $86.38.(anthony.harrup@wsj.com)

0846 ET - Siemens Energy could increase shareholder returns after separating its Transformation of Industry division, Jefferies analysts write. The German energy equipment maker said it was preparing to spin off the unit while keeping a "meaningful minority stake." "We see the move favorably, refocusing the business on higher growth & margin gas and grids' segments," the analysts say. Jefferies has a buy rating on the stock and 215.00 euro target price. Shares are down 0.5% at 151.94 euros. (ian.walker@wsj.com)

0830 ET - Siemens Energy's plan to separate its transformation of industry unit isn't a surprise given previous reports that the company was considering options for the division, Citi analysts write. They add that while no timeline has been provided by the German energy equipment maker, they expect it to take some time. Citi values the business at 8.6 billion euros. The analysts add that while portfolio streamlining is sensible, they don't see any material financial benefit from a separation of the unit, and expect investors to focus on the company's gas and grid divisions. Citi has a neutral rating on the stock and 185.00 euro target price. Shares are down 0.5% at 151.96 euros. (ian.walker@wsj.com)

0751 ET - Metal miners' stocks rise in London as copper prices hold near record highs. Higher copper prices are the result of markets adjusting for potential U.S. import tariffs next year, AJ Bell's Russ Mould writes. Copper trades flat at $14,385 a metric ton. Gold and silver slip but remain elevated, with gold contracts down 0.4% at $4,675.50 a troy ounce while silver contracts fall 0.2% to $68.52 an ounce. Hochschild Mining leads the sector, rising 7.3% after posting strong first-half earnings. Antofagasta adds 2.8%, while Fresnillo and Endeavour Mining jump 1.4% and 1.2%, respectively. Anglo American adds 1.1%.