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.
0619 GMT - Seatrium's margin recovery remains intact despite muted order wins, says Morningstar's Chokwai Lee in a note. The analyst had anticipated slower order book momentum in 2026 amid a more competitive tender environment. The company doesn't expect visible drag from the U.S.-Iran war, with any costs for new contracts likely to be passed through and supporting Morningstar's 2026 gross margin estimate of 9.5%. This margin could move towards 11.5% by 2030 as legacy projects wind down, he adds. While higher oil prices from the conflict support offshore investment, order wins are likely to materialize gradually as customers remain disciplined on capital efficiency, he says, citing the company. Morningstar retains its fair-value estimate of 2.80 Singapore dollars. Shares are down 0.9% at S$2.10. (megan.cheah@wsj.com)
2337 GMT - Oil edges higher in early trade. President Trump on Monday aimed to quell a growing conflict between Israel and Hezbollah that threatened to derail U.S. peace talks with Iran. Trump declared that both sides had agreed to halt fighting and that Israeli PM Netanyahu had called off attacks in Lebanon. However, there's an absence of a clear breakthrough in the U.S.-Iran negotiations and renewed incidents in the Middle East, Tickmill's Joseph Dahrieh says in an email. These reinforce worries that restrictions affecting the Strait of Hormuz could stay intact for longer than expected, which keeps oil prices elevated, the managing director adds. Front-month WTI crude oil futures are 0.2% higher at $92.31 per barrel. (ronnie.harui@wsj.com)
2153 GMT - Exceptional earnings, particularly for tech companies, have driven a bullish narrative that takes the edge off worries about the oil market, says David Russell, global head of market strategy at TradeStation. "The market cannot think that earnings are amazing and that we're entering into a geopolitical crisis at the same time," he says. But come mid-June, with earnings news out of the way, if there's no resolution to the U.S.-Iran conflict and U.S. oil inventories continuing to draw down eroding the oil-price cushion, the market could start to worry. "The risk is that as we get deeper into June, that cushion has less and less potential to help," he says. "It could be a relatively quick pivot and catch-up." (anthony.harrup@wsj.com)
1901 GMT - Crude oil futures settle higher as the weekend passes without the U.S. and Iran reaching an agreement to reopen the Strait of Hormuz and the two sides exchange strikes. An intraday spike on reports that Iran was halting talks to protest Israeli attacks in Lebanon eased after President Trump said he talked to Israel's prime minister and Hezbollah and that they agreed not to attack each other. He added that talks are continuing. "Geopolitical developments remain unfavorable, with negotiations aimed at securing a prolonged ceasefire still unresolved," says Spartan Capital's Peter Cardillo. "Elevated geopolitical risk is likely to keep energy markets volatile, with upside risks to oil prices remaining firmly in place." WTI settles up 5.5% at $92.16 a barrel and Brent rises 4.2% to $94.98. (anthony.harrup@wsj.com)
1753 GMT [Dow Jones]--Oil futures pull back from highs as President Trump says Israel and Iran-backed Hezbollah have agreed to stop fighting and that Israel won't be sending troops to Beirut. Trump says he spoke with Israeli Prime Minister Benjamin Netanyahu and to Hezbollah through representatives. "Israel will not attack them, and they will not attack Israel," he posts on Truth Social. Oil prices spiked after Iranian media said Iran was halting talks to protest Israeli attacks in Lebanon. "Talks are continuing, at a rapid pace, with the Islamic Republic of Iran," Trump adds in a separate post. WTI is up 4.9% at $91.64 a barrel after hitting $94.78 earlier. Brent is up 4% at $94.78. (anthony.harrup@wsj.com)
1603 GMT - Bank of Canada's credibility to keep inflation at 2% remains in fragile territory after the post-pandemic price surge, and could take another hit should the conflict in Iran keeps energy prices elevated for a longer-than-expected period, says an analysis from Bank of Nova Scotia economists. Credibility weakens, they say, when inflation persistently deviates from the BOC's 2% target. If the conflict drags on and BOC credibility slips further, "inflation would become more persistent and rises more sharply, requiring materially tighter policy," the Scotiabank economists say. Scotiabank's economics team has been one of the few calling for BOC rate hikes by the end of 2026 due to underlying price pressures in the economy. (paul.vieira@wsj.com; @paulvieira)
1355 GMT - Crude futures extend gains on a report that Iran is halting talks with the U.S. through mediators in protest against Israeli attacks in Lebanon. Prices were higher after the U.S. and Iran exchanged strikes at the weekend, while efforts toward an agreement continued. Iran's Tasnim news agency says on X that due to "continued Israeli airstrikes in Lebanon, and given that Lebanon was part of the preconditions for the ceasefire, Iran will halt the exchange of talks and messages through the intermediary with the United States." WTI is up 6.5% at $93.03 a barrel and Brent gains 5.5% at $96.13. (anthony.harrup@wsj.com)
1247 GMT - Oil futures are higher as the weekend passes without the U.S. and Iran reaching an agreement while the two sides exchange strikes. "Although both sides exchanged revised proposals, the absence of a clear breakthrough and renewed incidents in the region reinforced concerns that restrictions affecting the Strait of Hormuz could remain in place for longer than previously expected," Joseph Dahrieh of Tickmill says in a note. "While a successful agreement could eventually help push prices down, the reopening of shipping routes and normalization of energy flows would likely be gradual." WTI is up 2.9% at $89.90 a barrel and Brent rises 2.3% to $93.23. (anthony.harrup@wsj.com)
1154 GMT - Equinor's shares have two tailwinds that could push them nearly 25% higher, Baader's Frederic Lorec writes. The first is a structural one, he says. The Norwegian energy major has become a key gas supplier to Europe after the bloc weaned itself off Russian gas after the invasion of Ukraine. Gas prices have been elevated since Qatari gas facilities were damaged during the conflict in the Middle East and mean Norwegian gas margins should remain supported through at least 2028, Lorec adds. Secondly, low-cost oil production means the company is benefiting from the current higher oil prices, he adds. An Iran deal would hurt both tailwinds, but this isn't the base case given the state of negotiations, he adds. Shares rise 2.9% to 344.70 krone. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
June 02, 2026 04:20 ET (08:20 GMT)
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