The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0815 GMT - U.S. gasoline prices climbed back to $4 a gallon on Monday as the Iran war continued to squeeze global oil supplies and push up energy costs. Prices have climbed from $3.87 a week ago and $3.14 a year ago, according to the American Automobile Association, marking the first time the national average has reached $4 since mid-June. Hawaii, California and Washington are among the most expensive gasoline markets, with prices above $5 a gallon, AAA data shows. (giulia.petroni@wsj.com)
0804 GMT - A tighter correlation between energy prices and short-dated euro swap rates seems to be supporting the euro as the Middle East conflict escalates, ING's Chris Turner says in a note. Higher energy prices have driven a sizeable narrowing in euro-dollar two-year swap spreads, he says. Two-year euro swap rates are trading at a new high for the year, while last week's lower-than-expected U.S. inflation data has left short-dated U.S. rates off their highs, he says. "We do favor the euro moving back below $1.14 on these high energy prices, but we are cognisant of the risk of a surprise rate hike from the European Central Bank this Thursday." The euro rises 0.1% to $1.1445.(renae.dyer@wsj.com)
0754 GMT - Markets raise their bets on the prospects of the Bank of England increasing interest rates in the coming months due to rising oil prices. Escalating hostilities between the U.S. and Iran over the weekend earlier caused the price of Brent crude to rise above $90 per barrel, increasing concerns about prospects of higher inflation. Markets price in a total of 42 basis points of BOE rate increases in 2026, 4 basis points higher than Friday's pricing, LSEG data show. (miriam.mukuru@wsj.com)
0747 GMT - European airline stocks fall as oil prices rise following an escalation of hostilities between Iran and the U.S. over the weekend. Deutsche Lufthansa and Air France-KLM trade 2.7% and 3.1% lower, respectively, while International Consolidated Airlines Group is down 2.1% and Wizz Air falls 3.0%. Jet2 and TUI trade 2.1% and 1.5% lower, respectively. EasyJet shares are down 0.5% and Ryanair tumbles 7.2%. The Dublin-listed carrier on Monday posted a drop in first-quarter net profit on lower fares and fuel-cost headwinds amid the conflict in the Middle East. (nina.kienle@wsj.com)
0729 GMT - Gold prices slip as escalating attacks between the U.S. and Iran push Brent crude back above $90 a barrel, reinforcing concerns over inflation concerns despite softer U.S. inflation data. "The recent price action suggests that concerns over higher-for-longer interest rates are offsetting gold's traditional safe-haven appeal, leaving gold largely range-bound despite escalating geopolitical risks," says Soojin Kim, analyst at MUFG. Markets are now pricing in at least one interest-rate hike by the Federal Reserve this year, diminishing the appeal of nonyielding bullion. In early European trading, gold futures are down 0.2% to $4,010.20 a troy ounce. (giulia.petroni@wsj.com)
0726 GMT - Yields on U.K. government bonds climb as the U.S.-Iran conflict drives up oil prices, raising inflation risk. Investors are concerned that the prolonged hostilities could push up inflation and cause the Bank of England to increase interest rates. Ten-year gilt yields climb 4.4 basis points to last trade at 4.994%, Tradeweb data show. (miriam.mukuru@wsj.com)
0721 GMT - European energy stocks open higher as oil climbs on concerns that escalating hostilities between Iran and the U.S. threaten energy flows through the Strait of Hormuz. Tit-for-tat exchanges have pushed Brent crude futures 3.3% higher to 90.97 a barrel while WTI rises 1% to $78.46 a barrel. In London, BP is up 1.2% while Shell rises 0.5%. Spain's Repsol, Norway's Equinor and France's TotalEnergies are all up around 1.7%. Italy's Eni rises 1.4%.(adam.whittaker@wsj.com)
0717 GMT - Eurozone government bond yields rise in opening trade, in line with U.S. Treasury yields, as higher oil prices reignite inflationary fears. The significant military escalation between the U.S. and Iran has driven Brent oil back above $90 per barrel, last trading 3.2% higher at $90.91. The rise in oil prices will concern policymakers at the European Central Bank ahead of Thursday's decision. However, money markets continue to suggest the ECB won't raise rates until September, LSEG data show. Yields on the 10-year German Bund, maturing in August 2036, rises 2.2 basis points to 3.145%, while the increase is slightly more on bonds of eurozone peers, according to LSEG. (emese.bartha@wsj.com)
0658 GMT - Bitcoin falls slightly as an escalation in the Middle East conflict weighs on risk appetite. The U.S. military announced a ninth consecutive night of attacks targeting Iran late Sunday after a U.S. service member was killed. "With no important U.S. data scheduled today, bitcoin's direction will depend mainly on exchange traded fund flows, the dollar, Treasury yields, geopolitical developments and progress toward clearer crypto regulation," Zaye Capital Markets analyst Naeem Aslam says in a note. Bitcoin falls 1.0% to $63,845, LSEG data show. (renae.dyer@wsj.com)
0653 GMT - The dollar trades steady, showing little reaction to an escalation in strikes between the U.S. and Iran. The U.S. military announced a ninth consecutive night of attacks late Sunday, pushing oil prices higher. "In part, we think markets are now more comfortable with the risks stemming from disrupted energy supply," Monex Europe analysts say in a note. With the U.S. economy likely to slow in coming months, a modest pullback in the dollar "looks fair to us," they say. The DXY dollar index trades flat at 100.761. (renae.dyer@wsj.com)
0608 GMT - Energy prices and headline risks are likely to remain the key drivers for Bunds, curves and spreads ahead of the European Central Bank's monetary policy decision, Commerzbank's Rainer Guntermann says in a note. German 10-year Bund yields could test last week's highs at 3.16%, but these levels may also provide some support, the rates strategist says. Brent oil last trades at $90.57, up 2.80%. On Friday, the 10-year Bund yield closed at 3.123%, according to LSEG. (emese.bartha@wsj.com)
0601 GMT - Rising oil prices leave another interest-rate hike by the European Central Bank in the offing for September, which is also fully priced in, Commerzbank's Rainer Guntermann says in a note. ECB President Christine Lagarde is likely to strike a firm tone with regard to inflation risks, the rates strategist says ahead of the ECB's monetary policy decision Thursday. Lagarde, however, is unlikely to precommit to a September hike, as the situation remains in flux amid rising headwinds to growth, Guntermann says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 20, 2026 04:15 ET (08:15 GMT)
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