ASX Set to Rise as Oil Slumps, US Benchmarks Rally

The S&P/ASX 200 is expected to open higher, building on a strong local finish and positive moves on Wall Street. All major US benchmarks pushed up on news out of the Middle East, while Brent crude fell more than 6% overnight to $78.69 a barrel.

The drop in oil came after Reuters reported the US Army has used up much of its stockpile of highly accurate long-range missiles during its war with Iran. That report helped ease concerns about supply disruptions, though conflicting signals from Washington and Tehran over the status of talks to end the five-month conflict are keeping traders cautious. The latest attack on shipping in the Strait of Hormuz is a reminder of the risks to global energy flows.

International research firm GlobalData has urged energy companies to invest in cybersecurity to protect against supply risks. In a strategic intelligence report, the firm said energy infrastructure is a high-value target for cybercriminals. Ravindra Puranik, an oil and gas analyst at GlobalData, said attacks on critical national infrastructure (CNI) can have an outsized impact, disrupting essential services 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," Puranik said. "Mitigation requires stronger vendor governance, such as continuous monitoring, standards, segmentation, least privilege, audits, and joint incident response."

S&P Global reported that China has unveiled plans to significantly expand recycling of end-of-life batteries, metal scrap and renewable energy components by 2030. The new five-year program aims to decarbonise the country's industrial sector. The official 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 battery production.

On the company news front, Monadelphous Group (ASX:MND) landed a major $200 million Nelson's Point construction contract with BHP. Elsewhere, New Frontier Minerals (ASX:NFM) identified an untested bedrock conductor at Harts Range in the Northern Territory. Forrestania Resources (ASX:FRS) upgraded its British Hill gold resource estimate to 126,290 ounces. Westgold Resources (ASX:WGX) is on track for a Cue Hub expansion to 1.7 Mtpa in FY28. Evolution Energy Minerals (ASX:EV1) cleared the final hurdle for a Chikundo drilling contract in Tanzania.

In forex, the Australian dollar is buying US$0.7041. US natural gas futures were down 3.36% to $2.6875 per MMBtu.

For more on the commodities moves, see our commodities analysis. The BHP stock page has details on the miner's latest projects, while the CNI stock page tracks the rail operator's exposure to energy supply chains.