The S&P/ASX 200 index is expected to continue its upward trajectory this morning, supported by a strong overnight local finish, positive moves on Wall Street, and declining oil prices.

The Australian market is likely to draw further momentum from news that all major US benchmarks closed higher amid positive developments in the Middle East. According to Reuters, the US Army has depleted much of its stockpile of highly accurate long-range missiles during its war with Iran, while Brent crude fell by more than 6.0% overnight. The sharp drop in oil prices, if sustained, could ease cost pressures across transport and manufacturing sectors that have been grappling with elevated energy input costs throughout the conflict.

However, conflicting signals from the US and Iran regarding the status of negotiations to end their five-month-old war continue to create uncertainty. A recent attack on shipping in the Strait of Hormuz has further underscored the risks to global energy flows. The waterway carries roughly a fifth of the world's daily oil consumption, meaning any sustained disruption there would have immediate implications for fuel supply chains and freight costs worldwide.

Separately, international research firm GlobalData has urged energy companies to invest in cybersecurity to mitigate supply risks. In its latest strategic intelligence report, "Cybersecurity in Energy," GlobalData noted that energy infrastructure remains a high-value target for cybercriminals. The warning comes as utilities and oil and gas operators globally face growing scrutiny over the resilience of their digital systems, with several high-profile incidents in recent years having demonstrated the real-world consequences of breaches targeting operational technology.

Ravindra Puranik, an oil and gas analyst at GlobalData, stated that attacks on critical national infrastructure (CNI) can have an outsized impact, disrupting essential services, causing nationwide instability, and generating financial gains for hackers.

"Energy companies depend on extensive third-party ecosystems, making supplier vulnerabilities a major cyber risk that can spread into IT and OT environments. Attacks exploiting shared vendor software (e.g., file-transfer tools) have hit major players," Puranik said.

"Mitigation requires stronger vendor governance, such as continuous monitoring, standards, segmentation, least privilege, audits, and joint incident response," he added.

S&P Global has reported that China has unveiled plans to significantly expand the recycling of end-of-life batteries, metal scrap, and renewable energy components by 2030 as part of a new five-year program aimed at decarbonising its industrial sector. In a statement, China's official press agency said a road map has established specific volume targets for recycling and the use of secondary raw materials. The initiative is notable for commodity-exporting nations like Australia, as greater reliance on recycled materials could gradually alter the demand profile for primary mineral imports tied to battery and renewable energy supply chains.

According to S&P Global, the Chinese national road map calls for recycling more than one million tonnes of spent traction batteries annually by 2030, with recovered materials expected to meet 10% to 15% of raw material demand for new traction battery production.

On the company news front, Monadelphous Group (ASX:MND) is an early winner, securing a major $200 million Nelson's Point construction contract with BHP.

Elsewhere:

• New Frontier Minerals (ASX:NFM) has identified an untested bedrock conductor at Harts Range in the Northern Territory.
• Forrestania Resources (ASX:FRS) has unveiled an upgraded British Hill gold mineral resource estimate (MRE) of 126,290 ounces.
• Westgold Resources (ASX:WGX) is on target for a Cue Hub expansion to 1.7 Mtpa in FY28.
• Evolution Energy Minerals (ASX:EV1) has cleared the final hurdle for a Chikundo drilling contract in Tanzania.

In currency markets, the Australian dollar is buying US$0.7041.

Commodity prices (in US dollars):

• Iron Ore: up 0.15% to $93.90 per tonne
• Brent Crude: down 6.06% to $78.69 per barrel
• Gold: $4,077.86 per ounce
• US Natural Gas Futures: down 3.36% to $2.6875 per MMBtu